developing business plan

Business Plan: Recycling & Upycling Plant

ENTERPRENEURSHIP

&

NEW VENTURE CREATION

PROJECT REPORT ON

PREPARED BY

Group-9

Kiran Jacob

Rituparna Dutta

Ramanathan K

Ritesh Agarwal

Sunam Pal

Puneeth K

Business Plan: Recycling & Upcycling Plant Group-9

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Table of Contents

1. INTRODUCTION....................................................................................................................... 7

1. A Name & Address of Business ............................................................................... 7

1.B Names and Addresses …………………………………………………………….………………8

1.C Nature of Business .................................................................................................. 8

1.D Financing Needed ................................................................................................. 10

1.E Satement of Confidentiality Report .................................................................... 11

2. EXECUTIVE SUMMARY ...................................................................................................... 13

The purpose of selection of business ......................................................................... 14

Vision ............................................................................................................................ 15

Mision ........................................................................................................................... 14

Some Advantages to the environment: ..................................................................... 15

3. INDUSTRY ANALYSIS .......................................................................................................... 16

3.A Future outlook & trends ...................................................................................... 16

Future Outlook .......................................................................................... 16

The Evolution of the Disposable Society ................................................. 16

Trends ........................................................................................................ 19

3.B Competitor analysis.............................................................................................. 19

3.C Market Segmentation .......................................................................................... 20

3. D Industry & Market Forecast .............................................................................. 21


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4. BUSINESS DESCRIPTION .................................................................................................... 24

4.A General Description of Business ......................................................................... 24

4.B Industry & Enterpreneurs Background ............................................................ 24

4.C Goals & Potential of the of the business ............................................................. 26

4.D Products and their uniqueness…………………………………………………………….26

4.E Sizes of Business ................................................................................................... 26

5. PRODUCTION PLAN ............................................................................................................. 27

5.A Manufacturing Process Including sub contract ................................................ 27

5.A.1 Logistics : TTL PVT LTD .............................................................. 27

5.A.2 Automation Systems: Siemens/Honeywell .................................... 27

5.A.3 Information Processing: Ramco & IBM ....................................... 27

5.A.4 Quality Check: Dedlon ................................................................... 27

5.A.5 Auditing: Price Water Cooper ....................................................... 28

5.B Physical Plant with complete layout ................................................................... 29

5.C Machinery & necessary equipments .................................................................. 30

Machinery .................................................................................................. 30

Equipments ................................................................................................ 30

5.D Name of the suppliers of raw materials ............................................................. 33

6. OPERATIONAL PLAN ........................................................................................................... 36

6.A Description of company’s operation ................................................................... 36

The recycling process ................................................................................ 37

The upcycling process ............................................................................... 39


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6.B Location Advantage,Zone & Tax benifit............................................................ 40

Location: .................................................................................................... 40

Zone ............................................................................................................ 40

Tax Benifit ................................................................................................. 40

6.C Flow of order for goods & services ..................................................................... 41

6.D Proximity of suppliers & access to transportation ............................................ 44

6.E Tecnology Utilization ........................................................................................... 45

7. MARKETING PLAN ............................................................................................................... 47

7.A Target Market ...................................................................................................... 47

7.B Market Size and trends ........................................................................................ 47

7.C Competition .......................................................................................................... 49

7.D Pricing ................................................................................................................... 51

Pricing Stratigy: ........................................................................................ 51

Product Pricing: ........................................................................................ 51

7.E Distribution ........................................................................................................... 52

Regional Sales Headquaters ..................................................................... 52

Distribution Channels ............................................................................... 53

7.F Advertising & Promotion..................................................................................... 54

Positioning ................................................................................................. 54

Advertisements .......................................................................................... 55

8. ORGANIZATIONAL PLAN ................................................................................................... 56

8.A Form of ownership ............................................................................................... 56


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ORGANISATION STRUCTURE ........................................................... 56

8.B Employee Details .................................................................................................. 58

Number of employee ................................................................................. 58

Salary Structure ........................................................................................ 59

8.C Authotity of Policy & Prinicipals ........................................................................ 60

8.D Management Team – Key Personal .................................................................... 61

9. FINANCE PLAN ...................................................................................................................... 64

9.A Profit & Loss Statement ...................................................................................... 64

Calculation of fixed asset with depreciation ........................................... 66

Balance sheet ............................................................................................. 68

9.B Cash Flow statement ............................................................................................ 69

9.C Break-even analysis.............................................................................................. 71

9.D Cost controls & Budgeting .................................................................................. 71

9.E Sources & application of funds ........................................................................... 72

Loan repayment scheme ........................................................................... 72

Start-up ...................................................................................................... 72

10. CRITICAL RISKS.................................................................................................................. 72

10.A Evaluation of weakenes & threat of business .................................................. 72

Weakness ................................................................................................... 72

Threat ......................................................................................................... 72

10.B Potential Problems ............................................................................................. 72


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Technical challenges ................................................................................. 72

Failure to offer suitable alternative work ............................................... 72

Failure to properly consult ....................................................................... 72

Financial problems.................................................................................... 72

10.C Obstacle & their risks ........................................................................................ 72

10.D Contigency Plans & Alternative actions .......................................................... 72

10.D.1 Contingency ................................................................................... 72

10.D.2 Alternative Action ......................................................................... 72

11. HARVEST STRATIGY ......................................................................................................... 77

11.A Transfer of Asset ................................................................................................ 77

11. B Continuity of Business Stratigy ........................................................................ 80

11.C Identify Successors ............................................................................................. 81

12. COMPANY ANALYSIS ........................................................................................................ 81

12.A Feasibility of the project .................................................................................... 81

12.B SWOT ANALYSIS ............................................................................................ 81

12.C PRODUCT PROFILE ....................................................................................... 81

12.D Unique Selling Proposition ................................................................................ 83

12.E 6P’s of Marketing ............................................................................................... 81

PRODUCT: ............................................................................................... 81

PLACE: ...................................................................................................... 81

PROMOTION: .......................................................................................... 81

PRICING: .................................................................................................. 81


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PROCESS: ................................................................................................. 81

PEOPLE: ................................................................................................... 81

13. EXECUTION STRATEGY ................................................................................................... 81

14. APPENDIX .............................................................................................................................. 81

APPENDIX-1:Questionnaire ................................................................................... 881

APPENDIX-2: List of Subcontracts .......................................................................... 89

APPENDIX-3: List of Suppliers ............................................................................... 91

APPENDIX-4: Price List of Products ....................................................................... 92

15. REFERENCES ........................................................................................................................ 91


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1. Introduction

1. A Name & Address of Business

Name of company : ECO CAPITALIST PVT.LTD

Address:

ECO CAPITALIST (Kengeri )

Mysore Road, Kanmanike,

Kumbalgodu

Bangalore, Karnataka, India

560060

Phone: 80 - 4012 9800/9802/9820,

Website: www.ecocapitalistindia.com

1.B Names and Addresses of Principals

Names:

1. Sunam Pal

2. Kiran Jacob

3. Rituparna Dutta

4. Ritesh Agarwal

5. Ramanathan K

6. Puneeth K

Address:

Alliance University

Chikkahagade Cross

Chandapura - Anekal Main Road

Anekal, Bangalore - 562106

Karnataka, India


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1.C Nature of Business

Recycling Plant

India is the second most populous country, which has about 16% of the world

population and 25% of the land area. Rapid industrialization last few decades

have led to the depletion of pollution of precious natural resources in India

depletes and pollutes resources continuously. Further the rapid industrial

developments have, also, led to the generation of huge quantities of hazardous

wastes, which have further aggravated the environmental problems in the

country by depleting and polluting natural resources. Therefore, rational and

sustainable utilization of natural resources and its protection from toxic releases

is vital for sustainable socio-economic development.

Hazardous waste management is a new concept for most of the Asian countries

including India. The lack of technical and financial resources and the regulatory

control for the management of hazardous wastes in the past had led to the

unscientific disposal of hazardous wastes in India, which posed serious risks to

human, animal and plant life.

Looking at the current status of the recycling industry in India a number of

attempts have been made in order to use any kind of waste, be it household, e-

waste, industrial etc. or at least to dispose this waste in a wise manner which

would affect the environment in the least possible manner.

A number of committees and societies have been formed to look into this issue.

A number of conferences have been conducted, exhibitions have been put up,

and attempts have been made to spread awareness amongst the public in

relation to the waste management.

The concept of recycling is not very new in India, but looking at the actual

work done in this respect, we found out that there is still a long way to go.

India‟s e-waste is increasing at a rapid rate of 10% every year but still there are

no e-waste recycling plants in India yet. There are not many organizations

which are seriously taking steps towards it.

The work done and steps taken all seem to be very theoretical in approach and

good to hear but in reality nothing has seemed to take a practical shape.


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Here is a state wise distribution of the waste produced all over India, it also

classifies as to which waste can be recycled, incinerated or disposed.

Introduction to small/medium scale industries

The Ministry of Small Scale Industries (SSI) is a defunct Indian government

ministry. It was merged with the Ministry of Agro and Rural Industries to form

the Ministry of Micro, Small and Medium Enterprises. The ministry was tasked

with the promotion of micro and small enterprises (MSEs).

The Ministry of Small Scale Industries and Agro and Rural Industries

(SSI&ARI) was created in October 1999. In September 2001, the ministry was

split into the Ministry of Small Scale Industries (SSI) and the Ministry of Agro

and Rural Industries (ARI). The Ministry of Small Scale Industries merged with

the Ministry of Agro and Rural Industries to form the Ministry of Micro, Small

and Medium Enterprises in 2007

The Small Industries Development Organization (SIDO) was under the control

of the ministry, as was the public sector undertakings National Small Industries

Corporation Limited (NSIC).

The Small Industries Development Organization

It is the Office of the Development Commissioner for Small Scale Industries.

SIDO was established in 1954 on the basis of the recommendations of the Ford

Foundation. It has over 60 offices and 21 autonomous bodies under its

management. These autonomous bodies include Tool Rooms, Training

Institutions and Project-cum-Process Development Centers.

Various Services provided by SIDO to the SMEs:-

Facilities for testing, tool mending, training for entrepreneurship

development.

Preparation of project and product profiles.

Technical and managerial consultancy.

Assistance for exports.

Pollution and energy audits.

http://en.wikipedia.org/wiki/Government_of_India

http://en.wikipedia.org/wiki/Ministry_%28government_department%29

http://en.wikipedia.org/wiki/Ministry_of_Agro_and_Rural_Industries

http://en.wikipedia.org/wiki/Ministry_of_Micro,_Small_and_Medium_Enterprises

http://en.wikipedia.org/wiki/Microbusiness

http://en.wikipedia.org/wiki/Small_business

http://en.wikipedia.org/w/index.php?title=Ministry_of_Small_Scale_Industries_and_Agro_and_Rural_Industries&action=edit&redlink=1





http://en.wikipedia.org/w/index.php?title=Small_Industries_Development_Organization&action=edit&redlink=1

http://en.wikipedia.org/wiki/Public_sector_undertaking

http://en.wikipedia.org/w/index.php?title=National_Small_Industries_Corporation&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=National_Small_Industries_Corporation&action=edit&redlink=1


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SIDO also provides economic information services and advises Government in

policy formulation for the promotion and development of SSIs. The field

offices also work as effective links between the Central and the State

Governments.

1.D Financing Needed

We plan to invest and put in a maximum capital of Rs. 6 Crore. All the money

will be diversified for various purposes ranging from the expenditure of

acquiring machinery to salary of employees, marketing expenses and other

essentials.

Initial Investment costs

PARTICULARS AMOUNT

(Rs)

Building Construction 3000000

Advance for office building 500000

Machinery 10000000

Furniture 300000

Tools 400000

Computers 300000

Preliminary Expenses 1500000

Fixed deposit 1500000

Cash balance 2500000

Total 20000000


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1.E Statement of Confidentiality Report

The Guiding Principle of Confidentiality embodied in the language of the letter

of agreement among AMT, AMTDA, and Object ware Inc. states: "no one

should be able to use these reports to identify a company involved in any

transaction.”

The report also states that the Joint Statistics Committee, composed of an equal

number of AMT and AMTDA member representatives, shall approve any

Changes in report structure, use of and access to the data.

The Joint Statistics Committee has

approved the following Confidentiality Rules:

Press release report: No masking. All numbers will be disclosed.

No masking for units. All numbers will be disclosed.

For dollar value data points, the “3/40/5 Rule” will function as follows:

A minimum of 3 companies must report transactions for each data point

If one company accounts for more than 40% of the dollars reported, then

the number will not be disclosed; Or If 5 or more companies report

transactions, then the number will be disclosed.

There may be cases of non-disclosure of some dollar values, in order to

prevent someone from determining the value of a single data point which

has not been disclosed, per the above rules.

Unit data is disclosed on the premise that, for any product or sales area,

the number of participants in the program (both builders and

distributors), is at least three companies, and that in any given month, it is

not possible to attribute a transaction to a specific company. Due to

sensitivity of price information, restrictions are imposed on the disclosure

of this information.

The operating agreement further states that industry reports shall be

jointly owned by AMT and AMTDA (not Object ware Inc.).


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Their Joint Statistics Committee retains complete discretion to determine

the scope and terms of distribution of any reports. The participants shall

maintain ownership of their respective data, while the aggregate data base

is owned by the two

Associations.

In addition to the safeguards described above, additional provisions include:

• Access to USMTC data limited to the Object ware Inc. staff directly involved

in providing services and producing reports.


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2. Executive summary

Our business has a start - up capital of Rs. 2 Crores. We have allocated

resources to different spheres of the business with much thought and

application. Our basis consists of the up cycling of waste wrappers, cloth

pieces, broken wood pieces, and waste plastic and metal containers. We plan to

focus mainly on plastic and polyester and terracycled papers coming from

masala pouches like pan parag, plastic bottles of mineral water as well as soft

drinks and plastic from almost all packed food items like potato chips etc...

These items which would‟ve been a waste could actually be used for

transforming them into different stationary items like pencils, backpacks,

folders, pencil cases and other useful items like trash containers, eco binders,

disposable glasses, plates, umbrellas and bags.

The bottles produced will be used for packaging of cleaning agents used in

houses or for fertilizers, pesticides or other materials used for farming. The only

material required for making these products is trash, which is why our tagline is

"Trash modified is Cash simplified."

Raw material can be made obtained easily. We will have tie ups with major

MNC‟s who are the major contributors to the kind of resources we are looking

for. Some of these companies include Pepsi and coke India, Parle, HUL & Pan

Parag. We can ask each of these companies to sell their used bottles and

pouches to us as well as their defected products. This is how we will acquire


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our raw material which can be easily made available due to the large amount of

sale of products in these categories in India.

Our project has been formed for the purpose of not only earning huge profits

but also create awareness about the need of saving the environment. Hence, we

are expecting a lot of support when we initiate this revolution because of the

social cause attached to it. This organization will help take care of excess litter

and reuse and up cycle things that would have just added to the pollution if not

acted upon. Incineration adds to air pollution while dumping of reusable

products on land chokes the soil and makes it impossible to grow any crops on

that land.

Being Realistic, our products will be slightly higher priced than the normal ones

in the market because the process of up cycling is more expensive than

manufacturing from the start. The raw material has to be made suitable for safe

human use. Because of this technical 'difficulty', we are starting our business

operations in Bangalore first which will gradually followed by setting up

operations in other Metropolitan cities of Delhi, Kolkata, Mumbai and

Hyderabad.

Educated class would be willing to pay a little extra for an ecofriendly product.

It will just cost equivalent to only a cup of coffee. In India, the percentage of

people paying a little extra for the 'green' products is about 7 - 8% and

fortunately, this % is increasing. Considering the Metro cities, this % would be

about 20% since people have a better purchasing power, they are more educated

and they are more aware of the importance of the eco - friendly products.

The purpose of selection of business


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Personally both of us did think of many topics and had scrutinized quite a few

on various parameters. The reason why we selected this plan is because it is a

very feasible plan and the need of such a business is very much required at this

point in our country. Taking the example of Karnataka alone, every week we

read an article about waste being dumped or burnt in the outskirts of Bangalore

which is causing a number of problems like pollution and the release of very

dangerous gases. If the same waste can be actually used and transformed into

products of daily use then we are sure we‟ll be successful in the contribution

process of saving Mother Earth.

Vision

Solutions for a green planet

Mission

To become the world's leading Consumer Company for recycle products and

services rich in process driven operations, with emphasis on environment,

health and safety.

Some Advantages to the environment:

- Reduction and thereby gradual elimination of dumping of waste particularly

plastic.

- No contamination of ground or water by dumping or burning of these harmful

chemicals.

- Less toxic fumes

- Reduction in the rate of global warming, acid rains, etc.

We believe that it will not be very tough in convincing the corporate world also

about the advantages of such products and hence the search for customers could

also end there.


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3. Industry Analysis

3.A Future outlook & trends

Future Outlook:The Evolution of the Disposable Society

It helps to put municipal waste in perspective. At the turn of the 20th century,

the rapid industrialization of the previous century led to urban squalor. People

were crowded together in tenements, throwing their garbage into the streets. But

a dedicated urban reform movement helped to establish municipal sanitation

departments. Uniformed crews began to provide convenient collection and

disposal of municipal waste. The system was overseen by municipal engineers

who convinced local elected officials to invest in modern waste disposal

technologies such as "sanitary" landfills, waste-to-energy combustion facilities

and recycling plants.

As time went by, the waste stream changed. In 1905 municipal waste consisted

of household ashes from cooking and heating (75 percent), kitchen scraps (16

percent) and miscellaneous rubbish (7 percent). A century later, the ashes were

gone, but the "miscellaneous rubbish" (today's consumer products and

packaging) had swelled to take their place.

It only seems sensible, when you think about it, that there would be such

explosive growth in throwaway products and packaging. Municipal waste

management is provided as a public service, perceived by citizens as a free

resource. There is no incentive to economize on waste either at the household

level or, more importantly, in the marketplace.

Producers of consumer products never thought twice about designing their

products to be thrown away. It started with the convenient "no deposit no

return" pop cans which consumers were urged to toss in the trash rather than

return to the store to be refilled. And it continues today with a new generation

of throwaways: consumer electronics. The personal computer is the pop can of

the cyber age, a disposable container for quickly obsolescing information

technology.

Computer makers have shipped hundreds of millions of units without ever a

thought of what would happen to them when the newer, better, faster version

became available. And it is local cities and towns that are expected to bear the

brunt of the problem.


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Despite the figures being so huge no action has been really taken to either

control it or reuse it. Hence, we come up with this project to propose a recycling

up cycling plant which could use this waste as its raw material and make better

useful accessories out of it.

The Future of Waste So what is the alternative? At the same time that North American cities and

towns were beginning to budget for recycling, there was a quiet policy

revolution underway in Europe and the Canadian province of British Colombia.

There, governments and a handful of citizens were questioning the century-old

assumption that local communities should clean up after the Disposable

Society.

A new waste policy known as Extended Producer Responsibility (EPR) has led

to the adoption of laws in many parts of the world that require any company

that sells a consumer product to provide "cradle-to-cradle" take-back service to

its consumers. In British Columbia these laws are being introduced one product

category at a time. First the producers of paint were called to the table and

required to set up a program to take back and recycle their products from

consumers. Then the producers of pesticides, pharmaceuticals, fuels, and paint

thinners. Most recently the producers of packaged motor oil and oil filters. Soon

it will be tires and batteries. Then British Columbia will likely follow Europe's

example and require EPR for electronic products.

Cities and towns in British Columbia are now able to ban these products from

their waste management programs, reminding citizens to look to the producer

for the waste solutions. People living in British Columbia imagine a day when

cities and towns will devote their resources to developing state-of-the-art

composting and sewage treatment systems - not to mention libraries, parks and

schools - while recycling of consumer products and packaging will be a thriving

commercial activity. It will be carried out in what some like to call "discard

malls." It will be a profitable activity because products will be designed for

recycling and reuse, rather than for the landfill.

This is the New American Dream - that the consumer products industry can

eliminate waste by effectively managing its resources. It will take conscientious

citizens to send this message to our civic leaders.


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While we must currently make do with recycling, it is only one small part of

waste management and we can do much better. As long as communities

continue to pick up after producers of disposable products, producers will never

learn how to pick up after themselves.

Trends

Current trends in the market greatly favor the start-up of our recycling

business.

Municipalities are already seeking alternative means of disposal as disposal

prices are expected to skyrocket as landfill space decreases dramatically.

Municipalities are already seeking alternative means of disposal as disposal

prices are expected to skyrocket as landfill space decreases dramatically.

Growth rate is 7-8%.Thus, a huge opportunity ahead for us since still an

untapped market.

3.B Competitor analysis

Ratings (Scale = 1-5: 1-Poor, 5-Excellent)

Attributes Weight (Must

Total 100%)

Eco Capitalist,

Kengeri

Attero

Recycling

Global e-

waste

management

& services

(GEMS),

Sarjapura

Road

Product 30 4 2 3

Product Price 40 4 3 4

Distribution 15 3 3 3

Location 15 5 3 2

Total 100% 16 11 12

Conclusion Potentially

Advantageous

Upcoming

Threat

Main

competitor


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3.C Market Segmentation

DEMOGRAPHIC

Income: Medium and High

Social class: Any class

Occupation: Corporate, young students

PSYCHOGRAPHIC

Lifestyle: who wouldn‟t mind paying a little extra for a cause.

Outlook: who are willing to save the environment

BEHAVIOURAL

User Status: mainly it‟ll include the 1st timers who have hardly used recycled

products; the people who are regular to this concept will also be attracted.

Usage Rate: will gradually increase as they realize its advantages

Attitude: Looking for potential customers with positive mindset.

GEOGRAPHICAL

Urban India

Metro cities – Headquarters at Bangalore alongside operations in all major

metropolitan cities.


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3. D Industry & Market Forecast

Market Forecasting

2005 2006 2007 2008 2009

Potential

Customers Growth

CAGR

Municipalities

with treatment

plant

1% 34 34 34 34 34 0.00%

Compost users 5% 1,779 1,868 1,961 2,059 2,162 5.00%

Other 0% 0 0 0 0 0 0.00%

Total 4.91% 1,813 1,902 1,995 2,093 2,196 4.91%

Market Growth

The possibility of growth in this market is realistically huge. Consider the

following simple facts:

Municipalities must have an alternative means for disposing of human

waste; we offer a great alternative to meet that need.

Market trends are skewing more and more toward organic soil enhancements

and away from chemical fertilizers; we meet this need as well.

We have no direct competition in West Virginia and very little in the Mid-

Atlantic region.

All of this means that Mid-Atlantic Recycling is poised to see tremendous growth.

Buying Patterns

To be a player in the organic fertilizer and soil produce market, Mid-Atlantic

Recycling identified market needs to gain an overall competitive advantage. The

following explains our product's competitive advantages. Our product is:

Organic: Our organic product allows us to be responsive to the dominant

market trend. We offer all of the advantages that organic products have over

chemical competitors.

Comparable application times: Based on the West Virginia University

laboratory analysis, our product is comparable in potency to chemical


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fertilizer. Thus the application time is also comparable, which saves money

and labor since there is no need to purchase and apply additional products.

Recycled: This part of our product has to do with marketing. We are a

company that cares about the consumer and the environment. We offer a

valuable product, at low cost, that saves landfill space

Sales Forecast

The table below outlines the sales forecast and cost of goods sold. The forecast is

based on reasonable sales projections within this very large market.

An additional revenue stream will be the collection and removal of sawdust, wood

chip, and bark from the International Paper Company on a full time basis; the

contract for this work has been won. The sawdust materials collected will be used

in the composting process.


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Sales Forecast

2007 2008 2009

Unit Sales

Sawdust collection services in hours 13,440 13,440 13,440

Waste acceptance in tons 10,640 25,920 51,840

Compost sales in tons 14,776 36,000 72,000

Total Unit Sales 38,856 75,360 137,280

Unit Prices 2007 2008 2009

Sawdust collection services in hours $14.20 $14.77 $15.36

Waste acceptance in tons $18.00 $18.00 $18.00

Compost sales in tons $50.00 $52.50 $55.13

Sales 2007 2008 2009

Sawdust collection services in hours $190,848 $198,509 $206,438

Waste acceptance in tons $191,520 $466,560 $933,120

Compost sales in tons $738,800 $1,890,000 $3,969,360

Total Sales $1,121,168 $2,555,069 $5,108,918

Direct Unit Costs 2007 2008 2009

Sawdust collection services in hours $0.71 $0.74 $0.77

Waste acceptance in tons $0.90 $0.90 $0.90

Compost sales in tons $7.00 $7.35 $7.72


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Direct Cost of Sales 2007 2008 2009

Sawdust collection services in hours $9,542 $9,925 $10,322

Waste acceptance in tons $9,576 $23,328 $46,656

Compost sales in tons $103,432 $264,600 $555,710

Subtotal Direct Cost of Sales $122,550 $297,853 $612,688

4. Business Description

4.A General Description of Business

Our products offer needed solutions to municipalities and the market for

recycled products.

It realizes that consumers today are more conscious of recycling and of their

environment.

4.B Industry & Entrepreneurs Background

Rituparna Dutta

She is currently a student in Alliance University and is pursuing MBA. She

completed her graduation from PES Institute of Applied Science in Bangalore. An

enthusiast by nature, she has believed in exploring opportunities and has tried

being adventurous with whatever she does. Though she had the opportunity of

establishing her career as a Business Consultant, she opted to believe in her ideas

and go ahead with the plan of starting a new venture which she believes would not

only be successful financially but would also help in saving the environment from

the huge amounts of waste disposed every day. Her biggest assets are confidence,

commitment, thorough knowledge about the industry and financing abilities.


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Ritesh Agarwal

Currently pursuing his MBA in Alliance University. He completed his schooling

from Sri Aurobindo Memorial School in Madhepura. He has been involved in

many college level projects relating to marketing and Entrepreneurship

Development and has considerable amount of experience in formulation of plans

and projects. Like his partner, even he believes in being adventurous and doing

something for the environment. His biggest assets are his Marketing techniques

and knowledge of the local environment.

Sunam Pal

Currently in pursuing his MBA Alliance University. He did his engineering in

Electronics. He is Six sigma green belt professional. He has conducted &

organized several events & tech-feast at college level. Has participated in seminar

& presented case study to be published in journal. He is expertized in operation &

production management.

Kiran Varghese Jacob

He is currently pursuing his MBA from Alliance University, Bangalore. He has

completed his engineering in electronics & communication from Musaliar College

of Engineering & Technology. He is involved in many social organizations like

NGO to have a betterment of life of people. He is also an active participant in

social campaigns conducted by Greenpeace. His interests include travelling,

reading and other social activities to provide a better life for the fellow being. He

has always aspired to become an entrepreneur.

Ramanathan K.

He is currently a student in Alliance School of business and pursuing PGPM. He

did his schooling from Jawahar higher secondary school in Neyveli, Tamil Nadu

and he pursued his B.E from Sri Krishna College of engineering and technology,

Coimbatore, Tamil Nadu. He is very friendly in nature and he likes to move along

with people from different places. He is very good in analytical skills and people

skills. He wishes to be an entrepreneur and contribute towards improving the life

of people.


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4.C Goals & Potential of the of the business

To provide a top quality, recycled material to the consumer so that they may

benefit from many good properties and organic elements of the waste

products.

To ensure the financial wellbeing of the business.

To provide municipalities with an economical, alternative for the disposal of

the recyclable wastes.

To build in the consumer a positive feeling about the feasibility of using

recycled goods.

4.D Products and their Uniqueness

Cost: The price of our product is quite less.

Recycled product: We offer recycled products which is responsive to current

market trends. This includes the entire advantages organics offer over

chemicals. Recycled products characterize a "caring company" and are more

appealing to the customer's changing attitude toward organic fertilizer as

opposed to chemical fertilizer.

Elimination of disposal issues: Municipalities now have a waste that takes up

landfill space. Our service recycles the waste which saves valuable landfill

space.

Longevity of our Products: Our product lasts for many months, thereby saving

the customer‟s money (no additional expenditure for more products).

4.E Sizes of Business

Size of Business Number

Business Unit 1

Suppliers 14

subcontractors/outsourcing 8

Employees 40

Sales Head Quarter 8

Plant Size 10,000 square feet

Coverage of raw materials 4 states


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5. Production Plan

5.A Manufacturing Process Including sub contract/Outsourcing

5.A.1 Logistics : TTL PVT LTD

The external logistics will be subcontracted to TTL PVT LTD.

They will look into logistics at both supplier side & distribution to optimize

the cost.

They will operate & negotiate with tariff cost

5.A.2 Automation Systems: Siemens/Honeywell

The automation system will be contacted to Siemens.

Their job will be to install, configure & automate the entire production

process to be controlled from a control room.

5.A.3 Information Processing: Ramco & IBM

Ramco PVT LTD will be subcontracted to build ERP to support the

production process

They will look into the requirements & keep upgrading the tool with time

IBM will look into data management processing tool

5.A.4 Quality Check: Dedlon

The quality check will be sub contracted to Dedlon.

They will be ensuring the quality standard with tolerance zone of customers.

They will adopt practices like lean six sigma, TQM across industry & also

train them


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5.A.5 Auditing: Price Water Cooper

The entire responsibility of accounting auditing would be handled over to

the PWC.

They will look into the transparency, credibility, corporate governance pert

of it.

Would ensure that accounting abide by the legal laws.

5.A.6 Market Research: Ac Neilson

Market research will be conducted by AC Neilson.

They will look into the new markets that can be trapped.

They will help in sales forecasting.

5.A.7 Branding & Advertisement: Ogilvy & Mather

They will help in branding & promotion.

They will take care of advertisement.

5.A.8 Recruitment: MeritTrac

Recruitment & talent management will be done my MeritTrac.

They will help in developing a people knowledge base within company.


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5.B Physical Plant with complete layout


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5.C Machinery & necessary equipment’s

Machinery

We use two kinds of machines. The first is for the recycling of the plastic and the

paper.

From washing basins for waste plastic to granule extruder, complete line of

recycling plant can be seen on diagram. Recycling plant equipment is subject to

change depending on polymer to be recycled. Recycling plants contain washing

basins, crushing machine, agglomerate, drying unit, granule extruder and

packaging unit.

Equipments

Equipment used for sorting are Bales Breaker, mainly used for bottles washing,

Conveyor Belts with different set up, Metal Detectors and Separators, with

different configurations and Trommels.


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After separation plastic scraps should go to size reduction; in this section we will

be talking about Shredders and Granulators.

A good separation is what makes the final product pure therefore there is a

description of Dry Separators and wet separation with Sink-Float Tanks and

Hydrocyclones.

There is also some description of different ways of washing using Washing

Machines with some little explanation about Pre-Washing systems, according with

the scarps you will be dealing with, together with rinsing methods with Rinse-

Dryers and finally drying that is one of the most difficult things to achieve in

plastic recycling, by means of mechanical Centrifuges.

Other equipment commonly use are also Classifiers, Dosing Units, and Mixing

Silo.

When your scrap is clean and dry, you may want to upgrade your final product

according with what it is; for this you may want to go with an Agglomerator

(densifier) specially in case of thin film washing, a Pelletizing Lines together with

Polymer Filtration and speaking about PET and any Crystal Polymer, an IV

upgrade through Solid State Polycondensation.

And do not forget dirt doesn't disappear but goes into Water; few words about a

very important subject.

RAW MATERIAL

Aluminium UBC :-

Baled aluminum Used Beverage Can (UBC) scrap.

This material has a minimum density of 14 pounds per cubic foot and

maximum density of 17 pounds per cubic foot.

Magnetically separated material and free of steel, lead, bottle caps, plastic

cans and other plastic glass wood dirt, grease, trash etc.

Aluminium Litho:-

Clean Aluminum Lithographic Sheets. 1000 and or 3000 series alloys, to be

free of paper, plastic, extensively inked sheets and any other contaminants.


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PET :

Polyethalene Terphthalate is a thermoplastic polymer resin used in making

beverage bottles and other containers.

Specs:

Includes post industrial and post consumer beverage and food containers.

Prohibitive Materials:

Non specific plastic, non-plastic materials, and dirt.

There should be as little moisture as possible.

Free flowing liquid is unacceptable.

Contamination is not to exceed 2%.

Waste Raw Materials Procurement

Waste Procurement Area

Industrial

waste

Karnataka:

Mangalore,Mysore,Hosur

Tamil Nadu: Chennai,Coimbatore,Hosur,Madurai,katpadi

Kerela:Trivandrum,Alapzua

Andhra Pradesh:Tirupati,Hyderabad,Vijayawada,Nellore

Maharashtra/Goa: Madgaon,Vascodagama,Mumbai,Pune,Thane,Dadar

Domestic

Waste Bangalore,Mysore,Mangalore,Madurai,Chennai,Mumba,Goa

Municipality Bangalore,Hosur

Home

Appliances Bangalore,Mysore,Chennai


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Waste Raw material location

5.D Name of the suppliers of raw materials

5.D.1 TATA REFRACTORIES

Supplier of: Fire Bricks,Graphite Bricks, Clay Bricks.

Use: To insulate high temperature inside kiln chambers & boilers.

Location: Jameshdpur,Jharkhand.

5.D.2 ENMASS

Supplier of : Boilers, Cooling towers, chimneys.

Use: To support production operations in factory.

Location: Ahmedabad,Gujrat.


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5.D.3 ASHOK LEYLAND

Supplier of : Automobiles, Moving trolleys, mixer bucket.

Use: To support internal & external logistics.

Location: Hosur,Tamil nadu.

5.D.4 VEDANTA

Supplier of : Aluminium.

Use: To provide shielding to plant, machinery, and equipments.

Location: Madgaon,Goa.

5.D.5 SAIL

Supplier of : Steel.

Use: To provide shielding to plant,machinery,equipments.

Location: Bhilai,Chattisgarh.

5.D.6 KIRLOSKER

Supplier of : Cranes,Elevators,Drilling machines.

Use: To support operations.

Location: Pune,Maharashtra.

5.D.7 Hindustan Machine Limited

Supplier of : Machines & equipment.

Use: To support production.

Location: Chennai,Tamil Nadu.

5.D.8 SHELL

Supplier of : Oils, Petro chemical, Industrial Fuel gas.

Use: To support ignition at kiln, firing & support vehicles.

Location: Bangalore,Karnataka.


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5.D.9 Honeywell/Siemens

Supplier of : Automation Systems.

Use: To automate the entire production process.


5.D.10 JK paper

Supplier of : Paper, Packaging material, card boards.

Use: To help in covering, packaging.

Location: Rayagada,Orissa.

5.D.11 IBM

Supplier of : ERP system & ETL tool.

Use: To integrate the various departments & help in data management.


5.D.12 SR chemicals

Supplier of : Phosphate,chlorine,Bleaching agent.

Use: To treat the waste & make it free from germs.

Location: Ahmedabad,Gujrat.

5.D.13 Dalmia Cement

Supplier of : Cement.

Use: To support construction.

Location: Delhi,India.

5.D.14 Hindalco

Supplier of : Coal.

Use: To help in ignition & also by-products.

Location: Sambalpur,Orissa.


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6. Operational Plan

6.A Description of company’s operation

The Waste-Glass Recycling Plant is a set of machines to produce Supersol, a

pumice-like light porous foamed material, from waste glass produced in the

local community as 99% of its basic materials.

The Waste-Glass Recycling Plant consists of 9 machine units, a bottle supply

hopper, a bottle conveyor, a crusher, a cullet mill, powder conveyors, a

powder sifter, a mixing machine, a baking machine and a Supersol sizer; and

automatic control panels. The bottle supply hopper can hold about 4.5 m3 of

waste glass, which is crushed into cullet of less than 6 mm in size by the

crusher. The cullet is then milled into glass powder with a median grain

diameter of 35 µm by the cullet mill. The glass powder is sent to the powder

sifter, which removes foreign objects and powder grains that are not of a


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specified size. The mixing machine mixes glass powder and add-in materials,

and continuously sends the resulting powder mixture to the baking machine.

There the powder mixture is preheated, softened, baked and foamed in the

temperature range of 700 ~ 920 degrees centigrade. The layer of glass powder

mixture having an initial thickness of 15 mm is converted into a light porous

slab having a thickness of about 60 mm. More than 70% of these machines

have originally been developed by Trim.

Most conventional glass recycling machines crushes glass only into cullet.

The resulting cullet is used for making glass again if it is transparent or

brown, and other cullet is mixed in secondary concrete products, asphalt

paving and blocks. The cullet, however, is low-value-added products, and its

use in business is limited. On the other hand, Supersol, produced by the

Waste-Glass Recycling Plant, has a wide range of application, such as a light

embanking material in civil engineering, a culture medium or an inorganic soil

amendment in horticulture and agriculture, a purification material in water

purification and an insulator in architecture. It is now used in various areas for

various purposes.

Glass cullet of less than 6 mm in size produced by the glass crusher is further

milled to produce galss powder. Our cullet mill is a tube mill modified for

glass cullet. Its inlet can easily take in glass pieces of different sizes and

shapes, and its outlet discharges glass powder in the order of smaller specific

gravities. The produced glass powder is separated from paper, such as bottle

labels, by a rotary sieve within the two-layer hopper. The cullet mill contains

many alumina balls, which collide with each other to mill cullet. The machine

requires no maintenance for about 2 years. The full-automatic operation of the

cullet mill synchronized with the glass crusher enables a continuous

production of glass powder, and has achieved a stable glass powder

production of the specified grain size and a higher production efficiency

(more than 97%).

THE RECYCLING PROCESS

The recycling starts with the sorting of the mixed plastic.

MIX PLASTIC sounds very dirty because coming from garbage selection and

consequently, it is. Pre-washing is provided mainly when granulator blades can


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wear rapidly because of the amount and type of dirt, but here a single shaft

shredder is the machine to use and wearing is not critical.

Mix plastics means plastics collected from garbage automatic or manual selection.

The average composition is what follows:

60 % LDPE

12 % HDPE

8 % PP

5 % Multi-layer packaging films

3 % PS

3 % PET

2 % PVC

7 % Non sortable garbage (Fabrics, cleaning pads, foamed materials, etc.)

It will never be possible to get a material good for film or other fine applications

but only a decent material that goes into injection molding, lumber production and

so on.

In our opinion the only way to make money with this kind of recycling is to get an

high productive line, in other words something with a throughput over 1500

Kg/hour.

The problem here is mainly separation and two, sometimes three, sink-float tanks

are required to deeply separate, at least, olefins from sinkable plastics.

Just because the best way to achieve results is using clean water, each tank should

"separated" from the following one by a washing/drying step so, while material

goes forward, water goes backwards.


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This applies to almost all systems, surely to all "no chemical" washing lines but, in

this particular case, it is very important.

Back to the pre-washing matter, it goes by itself this system already has a pre-

washing and nothing else is needed, at least from cleaning point of view. (while the

separation problem remains)

Let the trash plastic dry, wash it by centrifugal force , dry it then chop it into small

pieces again wash it using same force again dry it. Put it in a extruder and extrude

it out, it comes out in the form of strings .now, using a granulator make plastic

palletes check the melt flow index of the whole composite. Now, depending upon

the melt flow index of the composite different accessories are made up .

THE UPCYCLING PROCESS

The recycled plastic is then used for making products like Tiffin boxes, pencil

cases, etc. The plastic is put through machine which has special equipment

attached to it called the Dye. For making different products out of plastic the same

machine can be used but the Dye needs to be different. This Dye is available in

various types and shapes.

The plastic doesn‟t really needs a different process to make different things but a

separate Dye because it needs to be molded in the shape of the desired product

which the Dye does.

These upcycled goods are packed and then distributed.

Our basic distribution channels being the road transport. The selling and

distribution work is outsourced for various cities. Our distribution is mainly be

going through separate stalls in malls and shops like more, reliance mart etc. 1

person is appointed in each city to make sure that these stalls are operating

smoothly and that the representatives are giving sufficient information to our

buyers about the recycled concept. Apart from this we have corporate tie ups with

companies like Cisco, IBM, and Infosys who are going to use our up cycled

products on a regular basis.


40 | P a g e

UPCYCLING PLANT

An up cycling plant has nothing very new in the machinery, but the Dye plays a

very important role. To make anything new out of recycled paper all you need is

a different kind of Dye every time. Each Dye has a different shape and size so as

to give your products the desired design.

6.B Location Advantage, Zone & Tax benefit

Location:

We are planning to set up our unit on our ancestral property which is

located on Mysore road.

Our office will be located on Mysore Road in Bangalore from where all

our operational work will be carried out.

Zone

The property is located 23 kms from Bangalore.

The land will is totally 100,000 sq. ft. in area.

The office premises spread over an area of 1500 sq. ft. with enough space

of accommodating a store room where the latest stock les may be stored

Tax Benefit

Since we are into the manufacturing of recycled products and are set up in

a rural area, the government is giving us a tax holiday for 7 years.


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6.C Flow of order for goods & services

PROCESS FLOW CHART

RECYCLING PROCESS FLOW CHART

WASH PLASTIC

WITH

CENTRIFUG

FORCE

SEPARATION OF PLASTIC FROM

OTHER WASTE MATERIALS

EXTRUDE IT IN THE

FORM OF STRINGS

MAKE PLASTIC PALLETES THROUGH A

GRANULATOR

MAKE DIFFERENT

ACCESSORIES

(UP CYCLING)

CHECK THE MELT

FLOW INDEX OF

THE WHOLE

COMPOSITE


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LIFECYCLE OF A PAPER

This is the lifecycle of a paper how it passes the various stages starting from the

customer where he uses the paper to the final stage where he ends up reusing it

after recycling.

Process

You buy something made of recycled paper.

You put your old paper into your recycling box/bin at home, or take it to a

paper bank.

The paper is taken to a factory to be recycled.

The paper is shredded.

The shredded paper has water added and is made into pulp (which looks a

bit like porridge) and has the ink cleaned off.

The paper goes through large rollers which squeeze out the water and

flatten the paper into big sheets

The new sheets can then be made into new newspapers, books and

magazines to be sold in shops.


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LIFECYCLE OF A PLASTIC

This is the lifecycle of a plastic how it passes the various stages starting from the

customer where he uses the plastic to the final stage where he ends up reusing it

after recycling.

PROCESS

You buy something in a plastic bottle.

You wash and squash your empty bottle and take it to a plastic bottle

recycling bank, or you may be able to put it in your recycling box/bin at

home.

The plastic bottles are taken to a factory for recycling.

The bottles are sorted into different types of plastic to be recycled

separately.

The sorted plastic is washed and shredded into small flakes.

The plastic flakes are melted down and can be made into new items

The new plastic items are sold in shops.


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6.D Proximity of suppliers & access to transportation

S.no

Suppliers Product Location Proximity (Distance in Km )

Mode of Transportation

Transport Agency

1 TATA REFRACTORIES Bricks Jameshdpur 1420 Km

Railway Good Train IRCTC

2 Enmass Boilers Ahmedabad 1505 Km Trucks ( Road ) Fed Ex

3 Ashok Leyland Automobile Hosur Within 50 Km Trucks ( Road ) Fed Ex

4 Vedanta Aluminiuma Goa 556 Km Good Train IRCTC

5 SAIL Steel Bhillai 997 Km Good Train IRCTC

6 Kirlosker Cranes Pune 838 Km Trucks ( Road ) Fed Ex

7 Hindustan Machine Tool Machines Chennai 348 Km Trucks/Flight Fed Ex

8 IBM Software Bangalore Within 50 Km Internet Extranet access

9 Honeywell Automation Tool Bangalore Within 50 Km

Personal Arrangements Honeywell

10 Shell Oil,Gas Bangalore Within 50 Km Trucks Fed Ex

10 Siemens Automation Tool Bangalore Within 50 Km

Personal Arrangements Siemens

11 JK paper Paper Rayagada 928 Km Flight DLF

12 SR Chemicals Chemicals Ahmedabad 1505 Km Ships/Flight/Road Fed Ex

13 Dalmia cement Cement Delhi 1204 Km Railway Good Train IRCTC

14 Hindalco Coal Sambalpur 1634 Km Good Train IRCTC

In order to develop or improve SRM, an organization needs to implement a

supplier segmentation approach that considers the internal needs of the business,

spend, and also accounts for all risk and business critical factors. Segmentation

uses 4 categories:

Strategic: Those few, most business critical suppliers, on which most

relationship management effort is expended to drive collaborative

engagement with shared benefits and minimization of risk.

Relationship Managed: Those suppliers with some strategic value, and

with whom an element of supplier relationship managed needs to be carried

out.


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6.E Technology Utilization

Cullet Mill

Glass cullet of less than 6 mm in size produced by the glass crusher is further

milled to produce glass powder. Our cullet mill is a tube mill modified for glass

cullet. Its inlet can easily take in glass pieces of different sizes and shapes, and

its outlet discharges glass powder in the order of smaller specific gravities. The

produced glass powder is separated from paper, such as bottle labels, by a rotary

sieve within the two-layer hopper. The cullet mill contains many alumina balls,

which collide with each other to mill cullet. The machine requires no

maintenance for about 2 years. The full-automatic operation of the cullet mill

synchronized with the glass crusher enables a continuous production of glass

powder, and has achieved a stable glass powder production of the specified grain

size and a higher production efficiency (more than 97%).

Powder Sifter

Glass powder produced by the cullet mill is sorted according to grain sizes, and

powder of the specified grain size is taken out.

Connection with a powder conveyor allows the continuous sorting of powder. In

addition, because of its closed system, no powder is released into the

surrounding environment.


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Powder Conveyors

Powder conveyors transfer glass powder from the cullet mill, the powder sifter,

and the mixing machine.

These are spin flow conveyors based on the principle of whirlpools. They allow

full-automatic, stable powder transfer, while powder transfer was considered

difficult before. Furthermore, since they do not use air flow, the generation of

static electricity is low, and no dust is released into the work environment.

Mixing Machine

Glass powder sorted out by the powder sifter and two types of foaming materials

are automatically measured and mixed. These materials. which are different in

quantity, specific gravity and shape, are thus uniformly mixed.

The mixing machine is of sequential batch type and can produce 350 kg of

powder mixture in a batch process. In addition, the whole process of feeding,

measuring and adding the two types of foaming materials is fully automated,

allowing the stable production of glass powder mixture in uniform quality.

Baking Machine

Powder mixture produced by the mixing machine is baked to make a light

porous foamed material, or Supersol. The baking machine consists of a baking

section and an annealing section, each of which has a light, insulating and

fireproof structure. The machine also has a wire-mesh belt conveyor to allow

continuous baking.


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Furthermore, the baking machine is equipped with 16 burners to carry out the

processes of preheating, softening, baking and foaming.

Supersol Sizer

Produced Supersol blocks are broken and sorted into specified sizes.

The breaker has breaking blades whose shape and material have been

specifically designed for Supersol production, allowing efficient breaking and

sorting.

7. Marketing Plan

7.A Target Market

High income and middle income groups, individuals & corporate.

Mainly the educated class of the society.

Focusing on companies, students and working people.

High frequency users

7.B Market Size and trends

Geographical Market Coverage

Delhi,U.P,M.P,Punjab,Gujrat,Rajasthan,West Bengal,Bihar,

Jharkhand,Chattisgarh, Orissa,Assam,Andhra Pradesh,Tamil

Nadu,Kerela,Karnataka, Goa,Maharashtra, Madhya Pradesh,Pondicherry,Dadar.


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Geographical Target Markets

Sales Headquarter

Region State/union Territory Places Targeted

Delhi North Delhi,Punjab,North west U.P,North M.P

Delhi,Noida,Gurgaon,Lucknow, Kanpur,Allahabad,Gorakhpur, Varanasi,Chandigarh,Jalandhar, Jhansi,Baroda,Agra,Gwalior, Meerut,Ludhiana,Barelley

Kolkata East and

North-East West

Bengal,Assam,Bihar

Kolkata,Silguiri,Asansol,Bardhaman, Adra,Darjeeling,Durgapur,Howrah, Purulia,Kharagpur,Guwahati,Patna, Gaya,Baroni,Mazzafarpur

Mumbai Central West

Goa,Maharashtra, Dadar,West M.P

Madgaon,Vascodagama,Mumbai, Pune,Thane,Nagpur,Bhopal, Gwalior,Nasik,Kurla,Dadar

Chennai Chennai Tamil Nadu,Kerela,

Pondicherry

Chennai,Madurai,Coimbatore,Hosur Katpadi,Pondicherry,Kanyakumari, Trivandum,Cochin,Allapazua

Ahmedabad North-west Gujrat,Rajasthan Gandhinagar,Ahmedabad,Bhuj, Ajmer,Kota,Jaipur,Jodhpur,Rajkot

Bhubhaneswar South-East Orissa,Chattisgarh,

Jharkhand

Bhubhaneswar,Cuttuck,Puri, Sambalpur,Rourkela,Balasore, Berhampur,Paradeep,Rayagada, Balangir,Jamshedpur,Ranchi,Bokaro, Dhanbad,Bhillai,Bilaspur,Durg, Raipur,Korba

Bangalore South-West

Karnataka Bangalore,Mysore,Managalore, Bijapur,Hubli

Hyderabad South-east & central-

east Andhra Pradesh

Hyderabad,Vishakapatnam, Vijayawada,Nellore,Rajamundry Scendurabad,Tirupati,Srikakulam


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Market Trends

Current trends in the market greatly favor the start-up of our recycling business.

Laws have been passed in placing greater restrictions of the types of landfills

which can receive human waste sludge. These laws take effect in 2008.

Municipalities are already seeking alternative means of disposal as disposal prices

are expected to skyrocket as landfill space decreases dramatically.

The organic industry now boasts sales in excess of $9 billion at retail, with growth

forecast to continue at 25% per year. The demand for compost to use in organic

farming and other applications is growing rapidly.

7.C Competition

MARKET COMPETITION

Though the concept of recycling and upcycling is relatively new in India , there are

some companies already working in the field of recycling but the up cycling

concept is totally new.

The recycling companies that we came across while our research our

Trishyiraya Recycling India Pvt. Ltd

TPL is a wholly owned Indian subsidiary of SIMS Recycling Solutions. SIMS

group is a USD 8.0 billion corporation having facilities in over 200 locations

across the globe. (www.SIMS-group.com). Pioneers in the area of metals and e-

waste management solutions, SIMS /TPL partner with many multinational

organizations contributing to their corporate social responsibility goals for a eco

friendly e -waste management.

Trishyiraya is focusing on four areas in India, bringing the best practices evolved

by SIMS over a period of time.

• Minimizing Product Lifecycle Costs.

• Controlling Toxicity.

• Sustaining Resources.

• Reducing Global carbon footprint.


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Global e- waste management & services

GEMS is the company situated in Surjapura road in Bangalore with over 20

years of experience in handling industrial hazardous waste, partners of this

organization have entered into electrical and electronic waste management in

India. Managed by a group of professionals, the team has all the expertise

necessary for e-waste management and disposal in a globally acceptable

manner. They use different techniques to convert the waste materials into useful

recycled materials.

Attero Recycling

Attero Recycling, an integrated end-to-end electronic waste (e-waste) recycling

company and now the first e-waste recycler to be registered with the Central

Pollution Control Board (CPCB), Ministry of Environment & Forests, Government

of India, is committed to initiate a socially-responsible movement towards

electronic waste. They mainly focus on the recycling of e- wastes and converting

to useful products Competitors located geographically.

Competitor locations


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7.D Pricing

Pricing Strategy:

The pricing is low enough to ensure rapid growth in the market yet still

provide a very healthy profit.

The pricing can be fixed at lower levels because the raw materials can be

procured at almost no or very less cost

Pricing will be mainly done based on the Overall Manufacturing Costs,

Logistics and Distribution Costs.

Product Pricing:

Products Market Price Our Product Price

Pens Rs 10 Rs 7 Paper (per sheet) Re 1 10 paise

Pen/Pencil Holder Rs 30 - 50 Rs 10 - 20 Toys Rs 200 - 300 Rs 10 - 200

Tote Bags Rs 200 - 500 Rs 50 - 300

Wallet Rs 150 - 1000 Rs 50 - 400 Clocks Rs 300 - 1500 Rs 150 - 500

Book Holders Rs 25 - 300 Rs 5 - 75 Bracelet Rs 10 - 500 Rs 5 - 50

Personalized necklaces Rs 400 - 2500 Rs 200 - 500 Pendants Rs 50 - 2000 Rs 10 - 200 Cufflinks Rs 50 - 500 Rs 10 - 50

Hats Rs 30 - 300 Rs 20 - 80 Brooches Rs 50 - 250 Rs 10 - 100

Earrings Rs 50 - 1000 Rs 10 - 50 Mouse pads Rs 50 - 500 Rs 10 - 50

Mugs Rs 100 - 700 Rs 30 - 150

Water bottles Rs 30 - 200 Rs 10 - 40 Bags (School Bags etc) Rs 250 - 1500 Rs 100 - 500

Plastic Bags (per bag) 50 paise 2 paise


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7.E Distribution

Our operational unit is in Kengeri, Bangalore. For distribution we are

concentrating on metro cities namely Delhi, Kolkata, Hyderabad,

Mumbai,Bangalore,Bhubhaneswar,Ahmedabad and Chennai.

The most important „P‟ of marketing mix when we talk in terms of managing

diverse geographical area is Place. Place encompasses distribution channel.

The best distribution channel will have the right mode of transport which will take

into consideration ease of distribution, timeliness, cost rationalization. For long

distance transportation railways or air links is most preferred.

Air links have the advantage of time reduction but are costly so in case of waste

recycling railways is seen to be the most preferred.

Regional Sales Headquarters

1. Kolkata ( East and North-east )

2. Delhi ( North)

3. Mumbai ( Central West )

4. Chennai ( south)

5. Hyderabad ( South East & central )

6. Bangalore ( South West )

7. Bhubhaneswar ( South East)

8. Ahmedabad ( North-West)


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Distribution Channels

Bangalore to Delhi

Distance – 2076Km

Best mode of Transport – Good Train

Bangalore to Kolkata:

Distance – 1886Km

Best mode of Transport – Good Train


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Bangalore to Hyderabad:

Distance – 569Km

Best mode of Transport – Good Train/Truck

Bangalore to Mumbai:

Distance – 984Km

Best mode of Transport – Ship/Good Truck/Train

Bangalore to Chennai:

Distance – 347Km

Best mode of Transport –Train/Truck

Bangalore to Ahmedabad:

Distance – 1505Km


Bangalore to Bhubhaneswar:

Distance – 892 Km


7.F Advertising & Promotion

POSITIONING

“A simple way to help the most complicated issue of this world-saving the

environment!”


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Advertisements

SMALL DAILY STEPS TOWARDS A SMALL DAILY STEPS TOWARDS A

SMALLER PERSONAL IMPACTSMALLER PERSONAL IMPACTC

A

P

I

T

A

L

I

S

T

S

T

H

E

E

C

O

-


56 | P a g e

8. Organizational Plan

8.A Form of ownership

ORGANISATION STRUCTURE

MIDDLE LEVEL

MANAGEMENT

OPERATIONS

DEPARTMENT

PRODUCTION

DEPARTMENT

HR DEPT.

FINANCE DEPT.

MARKETING DEPT.

SALES & DISTRIBUTION

QUALITY

CONTROL

PURCHASE

DEPT.

TOP LEVEL

MANAGEMENT

RESEARCH & DEVELOPMENT


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Since our business involves two major tasks i.e. recycling and upcycling of

plastic, paper and metal , it constitutes of a number of processes and hence a

formal structure for our organization should be suitable.

The lower level management consists of the shop floor workers which

include skilled and the unskilled workers. They are involved in the collection

of the waste which is then chemically treated and is transferred to the

recycling plants. This recycled plastic, paper, glass, fiber and metal is then

transferred to our upcycling plant for further treatment. The lower level

management is supposed to report to their respective supervisors which are in

turn coordinated by the middle management.

While on the other hand, the operations department consists of:

HR DEPARTMENT

FINANCE DEPARTMENT

MARKETING DEPARTMENT

SALES AND DISTRIBUTION DEPARTMENT

These are the managerial departments which are responsible for controlling

the HR, Marketing, Finance, Sales and distribution in the organization.

The Middle level management directs, supervises and coordinates the

working of the operations and production department.

It resorts to the problems faced by these departments and facilitates the

smooth functioning.

It keeps an account and record of the work done.

It ensures that the proposed targets of every department are met

successfully, on time.

Finally,the middle level management is supposed to report all the details to

the top level management in the most comprehensive manner.


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The top management consists of the promoters and the board of directors.

The role of the board of directors is to take strategic decisions which involves

future planning, goals & objectives, laying down of the budget etc. and the

day to day working guidelines.

The Top-level management meets at least once a month so as to discuss the

progress of the organization and to decide the further course of actions.

8.B Employee Details

NO. OF PEOPLE IN EACH DEPT. (TOTAL HEADCOUNT)

Sl

no.

Department No. of people

1 Middle level Managers 2

2 Quality Control inspector 1

3 Production workers 15

4 Finance 1

5 Marketing 3

6 HR 2

7 Sales & Distribution 8

8 Research & Development 2

9 Miscellaneous (guards, peons, drivers etc.) 6

Total 40

Hence, we plan to employ around 40 people in all.


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SALARY STRUCTURE

Sl

no.

Department No. of

people

Salary/person/m

onth

Total

salary/month

Total

Salary/annu

m

1 Middle level

Managers

2 10,000 20,000 2,40,000

2 Quality Control 1 3,000 3,000 36,000

3 Production

workers

15

Skilled workers

on machine (10)

6 2700 14,200 1,70,400

Transfer/ Scrap

collectors (10)

9 1890 17,010 2,04,120

4 Finance 1 6000 6,000 72,000

5 HR 2 6000 12,000 1,44,000

6 Marketing 3 6000 18,000 2,16,000

7 Sales &

Distribution

8 7000 56,000 6,72,000

8 Research &

Development

2 6000 12,000 1,44,000

9 Miscellaneous

(guards, peons,

drivers etc.)

6 3000 18,000 2,16,000

Total 40 21,14,520


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8.C Authority of Policy & Principals

Working hours

The factory workers will have to work a stipulated period 9 hours that is from

8a.m. to 5p.m. There will be 2 ten minute breaks during the day at 10:30a.m. and

3p.m. The lunch break will be a 40minute break from 12:45a.m.

Leave policy

We have two types of leave policies, first for the Production department where all

the workers will be granted leave on all national holidays as well as the first

Sunday of every month. While the operational team will have every national

holiday as well as every Sunday as a holiday. In case any employee or worker

wants to take a leave, he needs to notify the company before doing so. In the case

of any accidental/sick leave the employee must submit the medical certificate.

Maternity leave will be granted for 1 year with 75% wage being paid to the

employees.

Loan grant policy

The company has a very strict and conservative loan grant policy. We will grant

loan only to those employees who have worked in our company for a minimum of

5 years. The maximum loan the employees can apply for is Rs. 1,00,000. This loan

must be repaid with in a time span of 1 year at the rate of 5% interest per annum.

Retirement Policy

The employees must retire by the age of 60, and the pension will be granted to only

those employees who have worked with the company for a minimum period of 7

years. The factory workers will be paid 25% of their salary while the other

employees will be paid 15% of their salary.

Recruitment policy

We plan to employ only those workers who are physically fit and are suitable to

the kind of work we intend to do. To collect the factory workers we intend to

approach a contractor who would be aware of the local man power. To recruit the


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employees for our operational division, we will scan through the application banks

and the job portals. And any leftover vacancies will be filled by our own sources.

Training and Development procedures

Each new employee who is selected for the job goes through a rigorous one week

induction program which makes him thoroughly aware of his duties and

responsibilities on the job. Majorly, Training is required only for the production

team. For this we plan to implement on the job training methods where in the new

employee would work under an existing employee and learn the methods of

working on the machine.

For the clerical work force here, the supervisors train the subordinates in relation to

the work to be done. Every month a mentoring session is conducted, so as to revise

the employees and workers about the company goals and objectives. The

employees also get a chance to share the grievance they‟ve faced and the redress is

given for the same.

8.D Management Team – Key Personal

FACTORY MANAGER:-

1. To plan, develop and monitor weekly / daily charging and delivery

schedules based on S & OP plan to realise targeted volumes and participate in

management meetings for effective interaction

2. To liaison with Q.A. for timely approval of raw material and results of IP

and finished goods and with Process Control Lab for In Process tests to realize

standard yields and quality of Technical& Formulations

3. To liaison with Development Lab for process development needs (trouble

shooting) and opportunities (for improvements) and new products.

4. To identify products as per MIS for reprocessing of Non-conforming

products and plan production for liquidation of the same to reduce inventory.

5. To review monthly MIS and identify products to reduce costs.


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6. To ensure the follow-up in actual practice of the critical process

parameters and controlled conditions by effective implementation of use of

established documented procedures.

7. To ensure the maintenance of the documentation of the production batches

(e.g.. Log sheets and Log books) and registration of any observed deviations

in manufacturing operations.

8. To maintain awareness of unsafe working operations / environment and

effective follow - up for realisation of corrective actions

9. To lead and motivate staff and workmen under control for maximising

productivity and maintaining discipline and adhere to company procedures for

grievance handling and seek support eliminate them.

10. To participate and assist in developing skills.

11. To ensure the maintenance accuracy of the documentation of the production

batches (e.g.. Log sheets and Log books) and registration of any observed

deviations in operations / shop-floor.

12. To follow all systems / procedure ( MIS, SAP) ISO 9001, ISO 14001,

OHSAH in area of operation and assist in ensuring maintenance through

planned audits.

13. To adhere to Company procedures and seek necessary support for grievance

handling and maintenance of discipline.

B) PRODUCTION MANAGER:-

1. He will be expected to manage the day-to-day running of the production facility

while maintaining a cost effective and efficient manufacturing process

2. Solid commercial acumen, strong leadership and good team working capabilities

are vital to the position

3. He will have to have knowledge of quality systems and costing with the ability

to achieve targets within budget


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C) SALES MANAGER:-

1. He will be expected to manage the day-to-day sales while maintaining an

optimum balance between the stock left and production

2. He will have to have knowledge of quality systems and costing with the ability

to achieve targets within budget

D) HR MANAGER:-

1. To create and utilize an able and motivated workforce, to accomplish the basic

organizational goals

2. To establish and maintain sound organizational structure and desirable working

relationships among all the members of the organization

3. To secure the integration of individual and groups within the organization by co-

ordination of the individual and group goals with those of the organization

4. To create facilities and opportunities for individual or group development so as

to match it with the growth of the organization

5. To attain an effective utilization of human resource in the achievement of

organizational goals

6. To identify and satisfy individual and group needs by providing adequate and

equitable wages, incentives, employee benefits and social security and measures

for challenging work, prestige, recognition, security, status, etc.

E) FINANCE MANAGER:-

1. Utilizing the financial resources of the company in a very positive manner.

2. Allocating the resources very efficiently.


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9. Finance Plan

9.A Profit & Loss Statement

PARTICULARS 2009-10 2010-11 2011-12

Projections Projections Projections

RECEIPTS

Sales 22500000 40000000 60000000

Other income

127,500

127,500

127,500

Closing Stock 750000 1333333 2000000

TOTAL (A)

23,377,500

41,460,833

62,127,500

Manufacturing expenses

Opening stock - 750000 1333333

Carriage inwards

20,000

50000 80000

Raw materials 9000000 15000000 25000000

Wastage(2% of RM) 180000 300000 500000

Power & Chemicals 500000 800000 1200000

TOTAL (B)

9,700,000

16,900,000

28,113,333

GROSS PROFIT (A)-(B)

13,677,500

24,560,833

34,014,167

Salaries 21,14,520 21,14,520 2614520

Rent 240000 264000 290000

Advertisement 1500000 1000000 1500000

General Expenses 100000 132500 154700

Audit fees 40000 40000 40000

Provident fund 264315 264315 326815

Employees State Insurance 105726 105726 130726

Repairs 500000 800000 1200000

Telephone charge 60000 75000 95000

Electricity 43500 45600 60000

Maintenance 72000 90000 110000

Preliminary Exp written off (20%) 300000 300000 300000

Loan repaid(25% every year) 2500000 2500000 2500000


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Sales Tax

900,000

1,600,000

2,400,000

TOTAL (C)

6,625,541

3,117,141

6,821,761

NET PROFIT BEFORE

INTEREST & DEPRECIATION

(B) - (C)

7,051,959

21,443,692

27,192,406

Interest on loan

1,200,000

9,000,000

6,000,000

Depreciation-As per Schedule

2,010,000.00

1,779,000

1,481,100

PROFIT BEFORE TAX

3,841,959

10,664,692

19,711,306

- Taxation - - -

NET PROFIT AFTER TAX

3,841,959

10,664,692

19,711,306


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CALCULATION OF FIXED ASSETS WITH DEPRECIATION

1st Year 2009

Particulars

Rate

of Opening Closing

Deprn W.D.V

Additions Deletions Total Deprn W.D.V

Land

0%

30,000,000.00

30,000,000.00

-

30,000,000.00

Building

10%

3,000,000.00

3,000,000.00

300,000.00

2,700,000.00

Machinery

15%

10,000,000.00

10,000,000.00

1,500,000.00

8,500,000.00

Furniture

10%

300,000.00 -

300,000.00

30,000.00

270,000.00

Computers

60%

300,000.00

300,000.00

180,000.00

120,000.00

Total

43,600,000.00 - -

43,600,000.00

2,010,000.00

41,590,000.00

2nd Year 2010

Particulars

Rate

of Opening ` Closing

Deprn W.D.V


Land

0%

30,000,000.00

30,000,000.00

-

30,000,000.00

Building

15%

2,700,000.00 -

2,700,000.00

405,000.00

2,295,000.00

Machinery

15%

8,500,000.00

8,500,000.00

1,275,000.00

7,225,000.00

Furniture

10%

270,000.00

270,000.00

27,000.00

243,000.00

Computers

60%

120,000.00

120,000.00

72,000.00

48,000.00

Total

41,590,000.00 - -

41,590,000.00

1,779,000.00

39,811,000.00


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3rd Year 2011

Particulars

Rate

of Opening Closing

Deprn W.D.V


Land

0%

30,000,000.00

30,000,000.00

-

30,000,000.00

Building

15%

2,295,000.00 -

2,295,000.00

344,250.00

1,950,750.00

Machinery

15%

7,225,000.00

7,225,000.00

1,083,750.00

6,141,250.00

Furniture

10%

243,000.00

243,000.00

24,300.00

218,700.00

Computers

60%

48,000.00

48,000.00

28,800.00

19,200.00

-

Total

39,811,000.00 - -

39,811,000.00

1,481,100.00

38,329,900.00


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PROJECTED BALANCE SHEET

PARTICULARS

2,009

2,010

2,011

CAPITAL & LIABILITIES

Capital

43,841,959

54,506,651

74,217,957

Long term loan

7,500,000

5,000,000

2,500,000

Current Liabilities

226,210

375,425

550,000

Creditors

750,000

1,500,000

2,500,000

TOTAL

52,318,169

61,382,076

79,767,957

PROPERTIES & ASSETS

Fixed Assets

41,590,000

39,811,000

38,329,900

Investments

1,500,000

1,500,000

1,500,000

Current Assets

Closing stock

750,000

1,333,333

2,000,000

Tools

400,000

600,000

800,000

Cash and bank balances

5,128,169

13,237,743

30,038,057

Debtors

1,250,000

3,500,000

6,000,000

Advances & Deposits

500,000

500,000

500,000

Prelimenary Expenses

1,200,000

900,000

600,000

TOTAL

52,318,169

61,382,076

79,767,957


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9.B Cash Flow statement

Particulars 2009 2010 2011

Projections Projections

Projection

s

SOURCES OF FUNDS

Capital - -

-

Net profit before tax & after Depreciation

3,841,959

10,664,692

19,711,306

Depreciation

2,010,000

1,779,000

1,481,100

Write off of Prelimenary Expenditure

300,000

300,000

300,000

Decrease in Investments - -

-

Net decrease in Current Assets - -

-

Net increase in Current Liabilities

&Provisions

976,210

899,215

1,174,575

Total A

7,128,169

13,642,907

22,666,981


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APPLICATION OF FUNDS

Fixed Assets

-

-

-

Increase in investments

-

-

-

Net Increase in Current Assets

2,000,000

3,033,333

3,366,667

Net decrease in Current Liabilities

2,500,000

2,500,000

2,500,000

Income tax - -

-

Drawings - -

-

Loans Given - -

-

Total B

4,500,000

5,533,333

5,866,667

Opening Balance

2,500,000

5,128,169

13,237,743

Closing Balance

5,128,169

13,237,743

30,038,057


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9.C Break-even analysis

9.D Cost controls & Budgeting

PARTICULARS AMOUNT(Rs)

Building Construction 3000000

Advance for office building 500000

Machinery 10000000

Furniture 300000

Tools 400000

Computers 300000

Preliminary Expenses 1500000

Fixed deposit 1500000

Cash balance 2500000

Total 20000000


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9.E Sources & application of funds

Loan repayment scheme

A total loan of Rs. 1,00,00,000 has been taken against the security of the

10,000 sq ft property on tumkur road.

The interest will be charged at 12% p.a. on the repayable part of the loan

25% of the loan has to be repaid at the end of every year.

Start-up

We‟ll have a contract with the municipal corporations of dumping the waste at

our factory on a monthly basis. We also plan to collect the waste from residential

areas as well as big town ships. Every fortnight the material comes – 2.5tonnes

10. Critical Risks

10.A Evaluation of weakness & threat of business

Weakness

High Costs initially incurred.

Channelizing the raw materials

Lack of awareness on “green” products.

Concentration on few customers initially

The prices of our products could be relatively higher

Threats

Customers failing to understand the concept of an eco-friendly company.

Competition pouring in.


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10.B Potential Problems

Technical challenges

Since the field in which we are planning to invest is relatively new to the Indian

market, it may be initially very tough for us to make ourselves recognizable.

Though the concept of recycling followed by upcycling of the same is really strong

but it may take us time in convincing people about its innumerous advantages.

Sometimes we may observe that people are aware about the advantages of

recycling and how helpful it is for the environment but it may be a daunting task

for us to actually put their awareness into practice and somehow encourage them to

use our products.

Failure to offer suitable alternative work

We should try to find suitable alternative work in your business for

employees you have selected for redundancy.

If we fail to offer suitable alternative work where it's available, any

subsequent redundancy dismissal could be unfair.

Failure to properly consult

If we fail to properly carry out collective redundancy consultation, a complaint

may be made to an employment tribunal by:

a trade union or elected employee representatives

individual employees who have been dismissed as redundant

The tribunal may award up to 90 days' pay to each affected employee.

Financial problems

If our business would become insolvent as a result of making the statutory

redundancy payments, assistance may be available from the Insolvency Service's

Redundancy Payments Office (RPO), though you will be expected to repay the

debt as quickly as possible.

The RPO can also help if you become formally insolvent and fail to pay the

employer's contributions into an occupational or personal pension scheme or owe

pay in arrears.


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10.C Obstacle & their risks

Risk - uncertainty of the outcome.

Risk can bring unexpected gains. It can also cause unforeseen losses, even

catastrophes.

Risk: Is the situation when there are a number of specific, probable outcomes, but

it is not certain as to which one of them will actually happen.

Two different attitudes toward risks:

1. Risk aversion: quantify an identified risk and control it, i.e., to devise a plan to

manage the exposed risk and convert it into a desired form.

2. Risk seeking: willing to take the risk with one's money, in hope of reaping risk

profits from investments in risky assets out of their frequent price changes. Acting

in hope of reaping risk profits from the market price changes is called speculation.

Ex: Speculation.

Terminologies

• Pure Risk- Always leads to loss.

• Speculative Risk- May Result in loss or Gain.

• Static Risk- Results in loss.

• Dynamic Risk- May Result in loss or Gain.

• Acceptable Risk.

• Non-acceptable Risk.


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Types of Risks

1. Material Risk- Building,Plant & Machinery.

2. Labour risk.

3. Market risk.

4. Equipment.

5. Legal Risk- Product liability, Public liability.

6. Political Risk- Subsidies, Sanctions etc.

7. Economical risk- interest rate risk, inflation.

10.D Contingency Plans & Alternative actions

10.D.1 Contingency

Added to estimates to offset uncertainty

It helps reduce the probability of a cost overrun.

Base estimate

Base estimate = Estimates + Activity contingencies

Final cost estimate

Final cost estimate = Base estimate + Project contingency

Base estimate:-

1. Equipment risk: 11000000+ 550000(5% of 11000000) = 11550000

2. Labour risk : 2000000+120000(6% of 2000000) = 2120000

3. Material: 900000+90000(10% of 900000) = 990000

So, total Base estimate: (1+2+3) = 13260000


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Final cost estimate:-

Final cost estimate = Base estimate + Project contingency

= 13260000+ 265200(2% of 13260000) = 13525200

10.D.2 Alternative actions

Risk Evaluation

• Arrange them in order of priority

• Provide information for deciding the most appropriate way of handling.

Ranking risks according to :

1. Frequency of loss

2. Potential severity of loss.

Risk analysis

Risk analysis is to be carried out with proper perception of risk of risk and cost

involved in Analysis.

Not to stick to one method.

Understand company and industry.

Should be financially reasonable.

Accurate record keeping.

Amount of imagination of required.

Risk Reduction

Reduce probability of loss and its severity.

Most important for PM process.

Risk Reduction / Prevention can be from.

Loss prevention.

Ensuring Safety.

Fire protection / Detection.

Environmental protection.


77 | P a g e

11. Harvest Strategy

11.A Transfer of Asset

Customizing the Transfer Variant

To post the transfer, a customer-specific transfer variant XY01 was created with

the following settings:

The same chart of depreciation is used in both company codes. The asset will

manage the same depreciation areas in company code AA15 as it did in company

code 1000. Therefore, it is not necessary to define cross-company depreciation

areas.

Transfer transaction types have to be entered for treatment of each of the

following: retirements (prior-year acquisitions) in the old company code, and

acquisitions (prior-year acquisitions) in the new company code. The transaction

types for handling current-year acquisitions are contained in the transaction types

for prior-year acquisitions.


78 | P a g e

Asset Transactions

After the intercompany asset transfer, during which a new asset master record was

created in company code AA15, the Asset Explorer shows the following

transactions:

Display of Transactions before and after Asset Transfer


79 | P a g e

FI Transactions

Line Items Created

Transaction types 390 and 395 are transaction types for proportional value

adjustments.

Full names of the G/L accounts:

11000: Machinery and Equipment.

11010: Accumulated Depreciation on Machinery and Equipment.

199990: Clearing of Non-Integrated Asset Acquisition.


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11. B Continuity of Business Strategy

Recycling at work is a great way to increase the business sustainability

and help to reduce climate change.

Once we start to recycle at work, we‟ll experience the wide range of benefits

that come with making your company a more sustainable and

environmentally responsible organization.

Here are some of the benefits of recycling in the workplace:

Enhances company image - Engaging in Greener Now business practices

and publishing those practices can do wonders for our company's image and

can attract both employees and customers.

Recycling is easy to do - Recycling at work is straightforward and easy to

do. It's easy to separate out materials to recycle from your other waste, if we

get a good system in place it's easy to implement and maintain.

Recycling increases customer loyalty - Customers prefer to do business

companies that behave in an environmentally-friendly way.

Recycling saves space and can reduce clutter - Recycling often reduces

clutter and improves the working environment. Less clutter also means

increased safety around your workplace.

Recycling is great for the environment - Recycling at work helps reduce

the environmental impact of our business. Recycling your waste materials

means they can be used again in new products and applications, instead of

simply going to landfill where they generate harmful greenhouse gas

emissions.

Increases employee morale - Employee satisfaction is the best reason to

undertake a recycling scheme. Employees find pride in working for a

company that embodies environmental values and focuses attention on its

environmental impact and responsibilities.

Recycling is cost effective - Recycling is a cost effective method of dealing

with the wastes of our Company, simply because it is often cheaper when

compared with general waste management and disposal.


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11.C Identify Successors

Identify key roles for succession or replacement planning.

Define the competencies and motivational profile required to undertake

those roles especially in this newly emerging market of Recycled products.

Assess people against these criteria - with a future orientation.

Identify pools of talent that could potentially fill and perform highly in key

roles.

Develop employees to be ready for advancement into key roles - primarily

through the right set of experiences.

The Set of Criteria that can be considered in identifying the Successor is:

Innovative Thinking.

Expert in Domain Knowledge.

Potentiality to understand the huge market opportunity in this industry

and tap this opportunity.

Commitment towards the business.

Excellent Decision-making and Problem-solving skills.

Diversify as and when required.

Good knowledge about International Business Practices which would

help the business while expanding globally.

12. Company Analysis

12.A Feasibility of the project

Drawing conclusions from our survey, we observed that 95% of the population is

concerned about the environment and is willing to take any action to protect it.

Very encouragingly nearly half of the population does not mind paying a few extra

pennies for the recycled products. It is also observed that around 70% of the

population is not aware of any company which is involved in the production of

goods made from recycled plastic and paper. As mentioned above, the feasibility

of our project is very realistic and all the calculations have been taken according to

the market surveys. Firstly, is the acquiring of resources like land, labour,

machinery, technicians etc. All these required resources will be got only after

proper research and also sticking to the budget. Next, is getting the raw material or

trash can be easily got alone by just having a contract with the local municipality.


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But we have taken steps of even having yearly contracts with major MNCs.

Following that will be recycling and segregating the waste and finally up cycling

the same. We also are having an R & D center to track the latest happenings in the

field and the Creativity team which is a part of the R & D team will help us come

out with innovative up cycled products.

USES OF RECYCLED PAPER

Just over 48% of office paper is recovered for recycling. This becomes raw

material for paperboard, tissue, and printing and writing papers. (*Over 73%

of all newspapers are recovered for recycling.

Almost a third goes back into making more newsprint. The remainder is

used to make paperboard, tissue, and insulation, or exported.)

*Approximately 1.5 million tons of construction products are made each

year from paper, including insulation, gypsum wallboard, roofing paper,

flooring, padding and sound-absorbing materials. Recycled paper can also be made into paper towels, notebook paper,

envelopes, copy paper and other paper products, as well as boxes, hydro-

mulch, molded packaging, compost, and even kitty litter.

12.B SWOT ANALYSIS

STRENGHTS

Socially responsible company.

Might get government incentives

Easy availability of raw material

Great scope for expansions

Wide range of machinery available, customization on request.

“green act”

WEAKNESSES

High Costs initially incurred.

Channelizing the raw materials

Lack of awareness on “green” products.

Concentration on few customers initially

The prices of our products could be relatively higher


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OPPORTUNITIES

Expansion prospects

Growing trend of education would increase the number of people buy the

products

Goodwill will be built over the years.

THREATS

Customers failing to understand the concept of an eco-friendly company.

Competition pouring in.

12.C PRODUCT PROFILE

We are using raw materials like paper and plastic and our end products comprise of

the following:

Disposable paper plates

Disposable glasses

Umbrellas

Back packs

Folders

Bottles used for purposes like filling cleaning agents/pesticides

Our target market is essentially the corporate houses and retail market through

stalls in different cities targeted.

12.D Unique Selling Proposition

We are one of its kind in the country and our USP being that not only our products

but even our working methodology is eco-friendly i.e. in the due course of

production we do not harm the environment in any manner (no pollution, no toxic

substances produced, no exploitation of natural resources).


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Hence, we have an edge over the other competitors. We create products from the

most useless substances in the environment and convert them into much more

useful products for reuse. We are an ISO certified company which produces its

products of international quality standards and we stick to our quality controls very

rigidly.

12.E 6P’s of Marketing

PRODUCT: Eco-friendly products produced by recycling and up cycling the

common trash. Products like pencil cases, backpacks, lunch box, eco binders,

homework folders, disposable glasses and plates.

PLACE: We are starting our business operations in Bangalore first which will

gradually followed by setting up operations in other Metropolitan cities of Delhi,

Kolkata, Mumbai and Hyderabad.

PROMOTION: Promotion programs will include distribution of free frooti to

students and corporate houses on house of ECO-CAPITALISTS: Frooti because

we will be tying up with frooti for marketing as well and its cans will have

advertisements on it. Going to companies and educational institutions and making

the people aware of our company our products and how it is important to be

“green”.

From the very beginning, we will adopt extensive marketing to ensure that the

people in Bangalore are aware of our company and its products. We will also put

some money on two latest trends in marketing. This includes internet marketing

and sms marketing.

All our marketing campaigns will include some amount of sentimental quotient to

induce the customers towards buying products made from recycled paper and

hence make them feel proud by making them aware of how much they‟re

contributing in saving the environment.

PRICING: Our daily working cost of refining and recycling plastic comes up to 5-6

Rs. Per day. This means their up cycling costs another 5-7 bucks varying

depending on the product. Our profit margin will be less initially and would be

around Rs. 2.


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PROCESS:

Our raw material is dumped at our factory by the municipal corporation every

fortnight. Since we‟ve entered into a contract with the municipal corporation, they

give us only that waste which comprises of paper and plastic. Not all kind of waste

can be used for recycling and upcycling purposes. The fact remains that the waste

received goes through thorough segregation so as to pick up the material which is

capable of going through treatments. Hence, our scrap collectors are given this job

of segregation.

PEOPLE:

We need technically sound people who can operate the machines and look through

the technical problems.

They will be trained on a regular basis to keep them updated with the technology.

The people need to adapt to the changes effectively and easily.

13. Execution Strategy

Eco-capitalists have a recycling and up cycling plant that produces new accessories

from the waste. We have mentioned about 6 products that our company would

produce. But, as our implementation strategy we will start up with only 3 products

and check the response of the target market which includes the corporates and the

general public.

We would like to launch the following products in the initial phase:

Disposable paper plates

Disposable glasses

Bottles used for purposes like filling cleaning agents/pesticides

Our initial focus is going to be only on the corporates. Our corporate tie ups for

them using our disposable paper plates and plastic glasses for their employees


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in their canteen is going to be our first step towards building of the “Eco-

capitalists”.

For this purpose we aim to focus on companies like CISCO,IBM and Infosys

Initially. Since, these companies have huge canteens and food courts and they

spend huge amounts on their human resource, we expect a good business from

them. Our managers will be going and briefing them about our products and as

to how our organization is working towards the social cause of saving the

environment. This would also help in generating awareness amongst the people

for the most alarming facts.

A good reason as to why our customers should choose us over the competitors

is the reason that by no sense do we harm the environment. When we produce

eco-friendly products we do not exploit the environment, damage it and then

produce, hence we claim to be what we actually are “Eco-Capitalists”.

According to the response that we receive from them, we will be setting up our

stalls in retail outlets.

Milestones

The following table lists important program milestones, with dates and managers

in charge, and budgets for each. The milestone schedule indicates our emphasis on

planning for implementation.


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14. Appendix


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APPENDIX-1: Questionnaire

1) Are you concerned about environmental deterioration?

A. Yes

B. No

2) Do you get time to do anything about it?

A. Yes, I do get time

B. No, who cares

C. No, but I try managing some time.

3) Have you ever used recycled products?

A. Yes many times.

B. Never

If yes, please name some: ______________________________

4) Would you mind paying a little extra if your contribution helps in saving the

environment?

A. Yes, why not.

B. No, I cannot afford it.

C. Can’t say, depends on the product and price.

5) Are you aware of any company that specializes in the manufacturing of products

from recycled paper and plastic?

A. Never heard of any such company

B. Yes, a few

6) Have you ever done or took any step towards the recycling of a product?

A. Yes, on a very minor scale

B. Had ideas but no resources.

C. Never tried such a thing.

7) Do you think a company who plans to manufacture products from recycled paper

and plastic would be successful?

A. Yes, definitely

B. No, it’s not possible

C. Yes, if the products are unique and the marketing is done properly.


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APPENDIX-2: List of Subcontracts

5.D.1 TATA REFRACTORIES

Supplier of : Fire Bricks, Graphite Bricks, Clay Bricks

Use: To insulate high temperature inside kiln chambers & boilers

Location: Jameshdpur,Jharkhand

5.D.2 ENMASS

Supplier of : Boilers, Cooling towers, chimneys

Use: To support production operations in factory

Location: Ahmedabad,Gujrat

5.D.3 ASHOK LEYLAND

Supplier of : Automobiles, Moving trolleys, mixer bucket

Use: To support internal & external logistics

Location: Hosur,Tamil Nadu

5.D.4 VEDANTA

Supplier of : Aluminium

Use: To provide shielding to plant, machinery, and equipment‟s

Location: Madgaon,Goa

5.D.5 SAIL

Supplier of : Steel

Use: To provide shielding to plant, machinery, and equipment‟s

Location: Bhilai,Chattisgarh

5.D.6 KIRLOSKER

Supplier of: Cranes, Elevators, Drilling machines

Use: To support operations

Location: Pune,Maharashtra

5.D.7 Hindustan Machine Limited

Supplier of : Machines & Equipment‟s


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Use: To support production

Location: Chennai,Tamil Nadu

5.D.8 SHELL

Supplier of : Oils, Petro chemicals,Industrial Fuel gas

Use: To support ignition at kiln, firing & support vehicles

Location: Bangalore,Karnataka

5.D.9 Honeywell/Siemens

Supplier of : Automation Systems

Use: To automate the entire production process

Location: Bangalore,karnataka

5.D.10 JK paper

Supplier of : Paper, Packaging material, card boards

Use: To help in covering, packaging

Location: Rayagada,Orissa

5.D.11 IBM

Supplier of : ERP system & ETL tool

Use: To integrate the various department & help in data management

Location: Bangalore,karnataka

5.D.12 SR chemicals

Supplier of : Phosphate,chlorine,Bleaching agent

Use: To treat the waste & make it free from germs

Location: Ahmedabad,Gujrat

5.D.13 Dalmia Cement

Supplier of : Cement

Use: To support construction

Location: Delhi,India

5.D.14 Hindalco

Supplier of : Coal

Use: To help in ignition & also bi products

Location: Sambalpur,Orissa


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APPENDIX-3: List of Suppliers

S.no

Suppliers Product Location Proximity

(Distance in Km )

Mode of Transportation

Transport Agency

1 TATA REFRACTORIES Bricks Jamshedpur 1420 Km

Railway Good Train IRCTC

2 Enmass Boilers Ahmedabad 1505 Km Trucks ( Road ) Fed Ex

3 Ashok leyland Automobile Hosur Within 50 Km Trucks ( Road ) Fed Ex

4 Vedanta Aluminium Goa 556 Km Good Train IRCTC

5 SAIL Steel Bhillai 997 Km Good Train IRCTC

6 Kerlosker Cranes Pune 838 Km Trucks ( Road ) Fed Ex

7 Hindustan Machine Tool Machines Chennai 348 Km Trucks/Flight Fed Ex

8 IBM Software Bangalore Within 50 Km Internet Extanet access

9 Honeywell Automation

Tool Bangalore Within 50 Km Personal

Arrangements Honeywell

10 Shell Oil,Gas Bangalore Within 50 Km Trucks Fed Ex

10 Siemens Automation

Tool Bangalore Within 50 Km Personal

Arrangements Siemens

11 JK paper Paper Rayagada 928 Km Flight Fed Ex

12 SR Chemicals Chemicals Ahmedabad 1505 Km Ships/Flight/Road Fed Ex

13 Dalmia cement Cement Delhi 1204 Km Railway Good

Train IRCTC

14 Hindalco Coal Sambalpur 1634 Km Good Train IRCTC


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APPENDIX-4: Price List of Products

Products Market Price Our Product Price

Pens Rs 10 Rs 7

Paper (per sheet) Re 1 10 paise Pen/Pencil Holder Rs 30 - 50 Rs 10 - 20

Toys Rs 200 - 300 Rs 10 - 200

Tote Bags Rs 200 - 500 Rs 50 - 300 Wallet Rs 150 - 1000 Rs 50 - 400

Clocks Rs 300 - 1500 Rs 150 - 500 Book Holders Rs 25 - 300 Rs 5 - 75

Bracelet Rs 10 - 500 Rs 5 - 50 Personalized

necklaces Rs 400 - 2500 Rs 200 - 500

Pendants Rs 50 - 2000 Rs 10 - 200 Cufflinks Rs 50 - 500 Rs 10 - 50

Hats Rs 30 - 300 Rs 20 - 80

Brooches Rs 50 - 250 Rs 10 - 100 Earrings Rs 50 - 1000 Rs 10 - 50

Mouse pads Rs 50 - 500 Rs 10 - 50 Mugs Rs 100 - 700 Rs 30 - 150

Water bottles Rs 30 - 200 Rs 10 - 40 Bags (School Bags

etc) Rs 250 - 1500 Rs 100 - 500

Plastic Bags (per bag) 50 paise 2 paise


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15.References

http://www.sustainabilityadvantage.com/

http://en.wikipedia.org/wiki/Supplier_relationship_management

http://www.epa.gov/sustainability/basicinfo.htm

http://lists.ibiblio.org/pipermail/marketfarming/2002-October/000063.html

http://www.wm.com/residential.jsp

http://www.wastemanagement.in/

http://www.wastemanagement.in/recycling-sustainability-and-energy-

recovery.html

http://en.wikipedia.org/wiki/Recycling

http://en.wikipedia.org/wiki/Waste_management

http://edugreen.teri.res.in/explore/solwaste/recycle.htm

www.waste.nl/redir/content/download/.../CS-pla%20ind_ebook.pdf

http://apac.simsrecycling.com/contacts-and-locations/india/bangalore

http://www.waste.nl/page/287

http://wgbis.ces.iisc.ernet.in/energy/paper/wms_for_bangalore/sustainable_

waste_management_system_for_Bangalore.pdf

http://smetimes.tradeindia.com/smetimes/news/industry/2011/May/09/attero-

recycling-to-set-up-e-waste-unit-in-bangalore5444372.html

http://www.attero.in/

http://www.inewsone.com/2011/05/09/attero-recycling-to-set-up-e-waste-unit-

in-bangalore/49160

http://saahas.org/downloads/ewastereport.pdf

http://www.sustainabilityadvantage.com/

http://en.wikipedia.org/wiki/Supplier_relationship_management

http://www.epa.gov/sustainability/basicinfo.htm

http://lists.ibiblio.org/pipermail/marketfarming/2002-October/000063.html

http://www.wm.com/residential.jsp

http://www.wastemanagement.in/

http://www.wastemanagement.in/recycling-sustainability-and-energy-recovery.html

http://www.wastemanagement.in/recycling-sustainability-and-energy-recovery.html

http://en.wikipedia.org/wiki/Recycling

http://en.wikipedia.org/wiki/Waste_management

http://edugreen.teri.res.in/explore/solwaste/recycle.htm

http://www.waste.nl/redir/content/download/.../CS-pla%20ind_ebook.pdf

http://apac.simsrecycling.com/contacts-and-locations/india/bangalore

http://www.waste.nl/page/287

http://wgbis.ces.iisc.ernet.in/energy/paper/wms_for_bangalore/sustainable_waste_management_system_for_Bangalore.pdf

http://wgbis.ces.iisc.ernet.in/energy/paper/wms_for_bangalore/sustainable_waste_management_system_for_Bangalore.pdf

http://smetimes.tradeindia.com/smetimes/news/industry/2011/May/09/attero-recycling-to-set-up-e-waste-unit-in-bangalore5444372.html

http://smetimes.tradeindia.com/smetimes/news/industry/2011/May/09/attero-recycling-to-set-up-e-waste-unit-in-bangalore5444372.html

http://www.attero.in/

http://www.inewsone.com/2011/05/09/attero-recycling-to-set-up-e-waste-unit-in-bangalore/49160

http://www.inewsone.com/2011/05/09/attero-recycling-to-set-up-e-waste-unit-in-bangalore/49160

http://saahas.org/downloads/ewastereport.pdf


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http://andhrabusiness.com/NewsDesc.aspx?NewsId=Indias-largest-e-waste-

recycling-unit-to-come-up-in-Bangalore.html

http://india.carbon-outlook.com/news/attero-recycling-set-e-waste-unit-

bangalore-thaindiancom

http://www.ipma.co.in/recycle.asp

http://www.ncbi.nlm.nih.gov/pubmed/19345395

http://andhrabusiness.com/NewsDesc.aspx?NewsId=Indias-largest-e-waste-recycling-unit-to-come-up-in-Bangalore.html

http://andhrabusiness.com/NewsDesc.aspx?NewsId=Indias-largest-e-waste-recycling-unit-to-come-up-in-Bangalore.html

http://india.carbon-outlook.com/news/attero-recycling-set-e-waste-unit-bangalore-thaindiancom

http://india.carbon-outlook.com/news/attero-recycling-set-e-waste-unit-bangalore-thaindiancom

http://www.ipma.co.in/recycle.asp

http://www.ncbi.nlm.nih.gov/pubmed/19345395

developing business plan

Business

business description

address of business

c nature of business

e sizes of business

production plan

industry analysis

d industry market forecast

project report onbusiness