+

Social Business

Brice LecouédicCamille BessouFrançois de BonnevilleJean-vincent Vaury

+The global plastic pollution issue

+The global consumption of plasticA world of plastic Simple Figures :- In 2010, 250 million tons of plastic was

produced- An 9% growth each year since 1973- This means 8 tons of plastic is produced every

second- However, production of plastic represents 4-6% of

oil consumption throughout the world…

+The global consumption of plasticA world of plastic

38%

25%

13%

10%

14%

What do we produce with plastic ?

Plastic bags (stock, conserve, protect)

Construction work (isola-tion, covering, low cost)

Transports (lighter ve-hicles)

Electricity and electronics (components)

Others (sports, leisure, toys, health)

+The global consumption of plasticA world of plastic Why do we need so much plastic ? It was not used

much before the mid 50s.

- Extremely convenient and has thousands of uses adapted to our consumer life

- Plastic items live longer (less production cycle).- Plastic has strong isolating attributes and saves

lots of energy.- Plastic items require often half the energy to

produce as would items made out of traditional raw materials.

+The global consumption of plastic Plastic consumption around the world - In North America and in Western Europe, each person

consumes a 100 kilos of plastic each year. By 2015, it should be 140 kilos. (40% rise)

- In emerging countries of Asia (China / India), each inhabitant consumes 20 kilos of plastic each year and by 2015, 36 kilos (75% rise)

Plastic is very useful and even essential in our day to day lives.

However recycling seems essential in order to prevent our world of becoming an open air garbage.

+Plastic : what do we recycle?Why recycle ?

- Every ton of recycled plastic saves up to 600-800 kilos of crude oil.

- Visual pollution : http://www.youtube.com/watch?v=jSD21zp89zM&feature=player_embedded

- Plastic survive hundreds of years in the wild (1000 years for a plastic fork)…However it can be recycled 5000 times.

+Plastic : what do we recycle?Recycling plastic

- Not all plastic items can be recycled , a sorting has to be made :

3) Processing

2) Sorting

1) Primary statePlastic arrives at recycling

factory

Recyclable plastic

Transformed into new item

(bottle, clothing…)

Plastic that is too

complicated or not worth recycling

Plastic is burned for

power.

+Plastic : what do we recycle?What is the situation around the world ?

- Developed countries are starting to feel the need to protect the environment and their future growth by recycling. (pro-recycling campaigns and setting up of recycling systems)

- But numerous efforts have to be made to change habits. http://www.youtube.com/watch?v=tK825QV-nZ0&feature=relmfu

- In developing countries such as India and China, the priority is clearly not environmental issues. Even if local efforts are made, most trash is piled in huge open air dumpsters.

+Plastic : what do we recycle?

Recycling efforts vary tremendously even among rich countries :

In developing countries there are no substantial efforts made, or very few in rich cities (Shanghai)

+Environmental impact of

plastic consumption

+Environmental impact of non-recycled plasticThe great pacific garbage patch

+Environmental impact of non-recycled plasticThe great pacific garbage patch

+Environmental impact of non-recycled plasticThe great pacific garbage patch

The size of foul field of Trash is 2 times the size of Texas. (controversial)

A "plastic soup" where the plastic is distributed throughout the water column.

1/5th of junk trapped in the “garbage patch” comes from ship dumping and the rest of the trash comes from human land trash.

90% of the trash in the ocean dump is from plastic, which is not bio-degradable.

+Environmental impact of non-recycled plastic bagsPlastic bags facts 500 to 1000 billion bags produced every year About 1 million plastic bags are used every minute 1% to 3% is recycled

Where the remaining 98% ends up?

98

2

Non RecycledRecycled

+Environmental impact of non-recycled plastic bagsPlastic bags and animals

+

Reminder : 500 to 1000 billion bags produced every year

Each year, the non-recyled part kills : 100,000 mammals and birdsMillions of fishes

Environmental impact of non-recycled plastic bagsPlastic bags and animals

+Environmental impact of non-recycled plastic bagsPlastic and animals – Chris Jordan and the Midway Project

+Initiated actions against global plastic pollution crisisGovernment actions Ban plastic bags (Bangladesh, Italy) Tax on plastics (Ireland) Charge for bags (Taiwan, France, Italy, USA) Prohibit thin plastic bags (China)

+Initiated actions against global plastic pollution crisisIn association with firms

+Our Social Business Proposition

+

Focus : Context in India

+Context in India

We decided to set up our recycling business in Mumbai, India. The richest city of the country with over 14 million inhabitant. But a land of contrast that is considerably damaged by plastic trash and where over.

Half of its population lives in giant slums like Dharavi. An open air dumpster :

- Each day Mumbai produces 11000 tons of garbage. - Half of it is not collected and remains in the street.

Therefore, the poor have found a way to make small earnings by selling plastic garbage by the kilo to recyclers

+Context in India

An organized system :- Traditionally children collect the plastic in the streets- Men collect it in the dumpsters- Women sort out the garbage in small recycling workshops

They usually work 10 hours a day and sell 1 kilo of plastic for 5 roupies (5 cents)

In a day one can hope make 100 roupies (1 dollar)… But it has its utility :

http://www.youtube.com/watch?v=QtHi6ewEiD8

+Context in India

With millions of people making less then 2 dollars a day offering work and low cost goods seems a reasonable ambition.

Why making shoes out of plastic ? In the world 300 million children don’t have shoes :

- Going barefoot is a vector of diseases (infectious, tetanus…)

- Unables, for example, a person to enter a school or a public place

- Simple respect of human dignity

+Social businesses already implemented that inspired us

Conserve India: Fashion against poverty:

http://www.conserveindia.org/

Tom shoes:

http://www.toms.com/

+Conserve India: Fighting poverty through fashion Born of a desire to reduce India's rubbish mountain, improve

energy efficiency, and help some of Delhi's poorest out of the city's slums. Conserve India achieves all this by turning plastic bags into high fashion.

Founded in 1998 by Shalabh and Anita Ahuja, an indian couple, Conserve is a NGO that employs 300 people.

They are selling their products in France, England,Netherlands, Italy, Spain and the United States.

No official stores, revending in fashion mall, like Galleries Lafayettes, Harrods…

+Conserve’s catalogue

Women Bags Men Bags

+Toms Shoes  TOMS Shoes was founded on a

simple premise: With every pair you purchase, TOMS will give a pair of new shoes to a child in need. One for One..

The TOMS mission of giving shoes has attracted other brands, resulting in unique and successful collaborations. Ralph Lauren sold co-branded Polo Rugby TOMS, giving a matched pair with every pair sold. Element Skateboards has issued limited edition TOMS + Element shoes as well as a One for One skateboard. With every skateboard purchased, one will be given to a child at the Indigo Skate Camp in Durban, South Africa.

+Why TOMS is giving shoes?

Many children in developing countries grow up barefoot. Whether at play, doing chores or going to school, these children are at risk.

Growing Up Barefoot. In many developing countries, children must walk barefoot for miles to school, clean water and medical help.

+Why TOMS is giving shoes?

Injury and Disease. Hundreds of millions of children are at risk of injury, infection, and soil-transmitted diseases that most can’t afford to prevent and treat.

Education and Opportunity. Children who are healthy are more likely to be successful students, and access to education is a critical determinant of long-term success.

A Better Tomorrow. A village of healthy, educated children have a better chance of improving the future of their entire community.

+

Our Social Business

1. Presentation

Shoes For Everyone

+Concept of Shoes For Everyone Create a business that buys plastic refuses and recycle it into

cheap basic shoes for the bottom of the pyramid (Indian market).

1 plastic KG = 1 pair of shoes

Or 1 Kg plastic = 16 rupees =0,35 CAD(4 times more than the

average price)

+ Help the bottom of the pyramid have access to primary

clothing (shoes) Help communities to deal with environmental issues.

Our mission

+Our value chain Steps to collect plastic and recycle it into shoes

1. Collecting plastic (prices paid by kilos to anyone that bring plastic refuses)

2. Plastic sorting (separate the transformable one and burnable one)

3. Use the burnable plastic for to fuel our own fabric 4. Recycle the transformable one into shoes (jelly

sandals)

+Concept of Shoes for everyone

Option 2: Each kg is bought 16 rupees (4 times the average price)

Option 1: 1 plastic kg = 1 pair of shoes

Plastic is sorted. Plastic is sorted.

Bags and burnable plastics are used to

provide energy

Bottles and other non-burnable plastics are

used to supply the shoes machine

Population is collecting

plastics

Sell very cheap shoes for the Indian market, the bottom of the pyramid.

+How shoes are produced?

Collecting Sorting Washing and riding of waste

Drying Sorted by color Cut and chop to fit in the machine

Melt and mold Final product

+Risks that need to be addressed Hard to communicate: Many languages are spoken in

India, some of them proper to villages or provinces=> Fire local employees to be well understood.

Infections: Make sure plastic are collected in good conditions => Inform population and employees of the precautions that need to be taken and the dangers of infections and diseases caused by wound.

Expensive shoes: Having the cheapest shoes for allowing everyone to purchase it => Make sure the shoes are less expensive than one day of work.

+

Our Social Business

2. Financial Aspects

Shoes For Everyone

+Start-up Capital

5 Years Industrial Shed Rental: 40 000$ Industrial Equipments: 100 000$ Reserve Account: 10 0000$

TOTAL: 150 000$

+How to Fund it?

Loan: 100 000$

Initial Capital: 30 000$

Indian Government Support*: 10 000$*based on Conserve India Support

Fund Raising: 10 000$

+Financial Strategy

Buy Plastic 4x Higher than the Market’s Price.

Plastic Purchase = 0,07x4 = 0,28 $/kg Sell Shoes 4x Higher than the Plastic’s kg Price.

Shoes Price = 4x0,28 = 1,12$ i.e. 50 Rs Get a GOP/unit comprised between 0,5 and 1.

GOP/unit = 1,12-0,28 = 0,84$

+Sales Target over 3 years

Year 1: 30 000

GOP = 30 000x0,84 = 25 200$ Year 2: 42 000

GOP = 42 000x0,84 = 35 280$ Year 3: 48 000

GOP = 48 000x0,84 = 40 320$

+ 40 %

+ 15 %

+Charges

Hired Labor Charges: 15 000$ 10 Unskilled Employees: 5 500$ (1,5$/hour) 10 Factory Workers: 7 300$ (2$/hour) 4 Founders: 2 200$ (1,5$/hour)

Annual Depreciation Charge*: 11 592 $*Based on a 10 Year Refund at a 3% Interest Rate.

Other Fees (Electricity, Marketing…): 4 000$

TOTAL Charges: 30 592$

+Net Operating IncomeYear 1-2 Year 1: -5 392$

NOI = 25 200-30 592 = -5 392$

Year 2: +1 238$

NOI = 35 280-34 042 = +1 238$

Reserve Account10 000-5 392 = 4 608$

2 Unskilled Employees

1 Factory Worker

40% Other Fees

+Net Operating IncomeYear 3

Year 3: +1 438$

NOI = 40 320-38 882 = +1 438$

5 Unskilled Employees

15% Other Fees

5% Revenues

+Long-Term Strategy

Reach at least a 10% Sales Growth/year.

Sell 100 000 Shoes In Year 10. Create Employment.

Employ 50 Workers by Year 10. Diversify the Production.

Develop Handbags.

+Risk Management

Only “Selling Free Shoes” means Going Bankrupt? Free shoes only available with 2 Kg of Plastic.

Why Choosing Us? Be better paid or…..Get Shoes of good quality.

Optimistic Sales Forecast? 10% Growth + More Populated than China in 2025.

No Place for Innovation? Most of the Clothes are made in Plastics.

+Sources

+Sources

http://advocacy.britannica.com/ http://news.nationalgeographic.com/ http://www.noplasticbags.org.au/ http://www.tomsshoes.ca/ http://www.conserveindia.org/ http://www.cnmachinerycorp.fr/recycle-machine.html

+Thank you for your attention!