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    Developing Business Plan Developing Business Plan Document Transcript

    • PROJECT REPORT ONBusiness Plan: Recycling & Upycling Plant PREPARED BY Group-9 ENTERPRENEURSHIP Kiran Jacob & Rituparna Dutta NEW VENTURE CREATION Ramanathan K Ritesh Agarwal Sunam Pal Puneeth K
    • Business Plan: Recycling & Upcycling Plant Group-9 Table of Contents1. 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 .................................................................... 112. EXECUTIVE SUMMARY ...................................................................................................... 13 The purpose of selection of business ......................................................................... 14 Vision............................................................................................................................ 15 Mision ........................................................................................................................... 14 Some Advantages to the environment: ..................................................................... 153. 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 1|Page
    • Business Plan: Recycling & Upcycling Plant Group-94. 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 ................................................................................................... 265. 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 ............................................................. 336. OPERATIONAL PLAN ........................................................................................................... 36 6.A Description of company’s operation ................................................................... 36 The recycling process ................................................................................ 37 The upcycling process ............................................................................... 39 2|Page
    • Business Plan: Recycling & Upcycling Plant Group-9 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 ........................................................................................... 457. 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 .......................................................................................... 558. ORGANIZATIONAL PLAN ................................................................................................... 56 8.A Form of ownership ............................................................................................... 56 3|Page
    • Business Plan: Recycling & Upcycling Plant Group-9 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 .................................................................... 619. 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 ...................................................................................................... 7210. CRITICAL RISKS.................................................................................................................. 72 10.A Evaluation of weakenes & threat of business .................................................. 72 Weakness ................................................................................................... 72 Threat ......................................................................................................... 72 10.B Potential Problems ............................................................................................. 72 4|Page
    • Business Plan: Recycling & Upcycling Plant Group-9 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 ......................................................................... 7211. HARVEST STRATIGY ......................................................................................................... 77 11.A Transfer of Asset ................................................................................................ 77 11. B Continuity of Business Stratigy ........................................................................ 80 11.C Identify Successors ............................................................................................. 8112. 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 5|Page
    • Business Plan: Recycling & Upcycling Plant Group-9 PROCESS: ................................................................................................. 81 PEOPLE: ................................................................................................... 8113. EXECUTION STRATEGY ................................................................................................... 8114. APPENDIX .............................................................................................................................. 81 APPENDIX-1:Questionnaire ................................................................................... 881 APPENDIX-2: List of Subcontracts .......................................................................... 89 APPENDIX-3: List of Suppliers ............................................................................... 91 APPENDIX-4: Price List of Products ....................................................................... 9215. REFERENCES ........................................................................................................................ 91 6|Page
    • Business Plan: Recycling & Upcycling Plant Group-91. Introduction1. A Name & Address of BusinessName of company : ECO CAPITALIST PVT.LTDAddress:ECO CAPITALIST (Kengeri )Mysore Road, Kanmanike,KumbalgoduBangalore, Karnataka, India560060Phone: 80 - 4012 9800/9802/9820,Website: www.ecocapitalistindia.com1.B Names and Addresses of PrincipalsNames: 1. Sunam Pal 2. Kiran Jacob 3. Rituparna Dutta 4. Ritesh Agarwal 5. Ramanathan K 6. Puneeth KAddress:Alliance UniversityChikkahagade CrossChandapura - Anekal Main RoadAnekal, Bangalore - 562106Karnataka, India 7|Page
    • Business Plan: Recycling & Upcycling Plant Group-91.C Nature of BusinessRecycling PlantIndia is the second most populous country, which has about 16% of the worldpopulation and 25% of the land area. Rapid industrialization last few decadeshave led to the depletion of pollution of precious natural resources in Indiadepletes and pollutes resources continuously. Further the rapid industrialdevelopments have, also, led to the generation of huge quantities of hazardouswastes, which have further aggravated the environmental problems in thecountry by depleting and polluting natural resources. Therefore, rational andsustainable utilization of natural resources and its protection from toxic releasesis vital for sustainable socio-economic development.Hazardous waste management is a new concept for most of the Asian countriesincluding India. The lack of technical and financial resources and the regulatorycontrol for the management of hazardous wastes in the past had led to theunscientific disposal of hazardous wastes in India, which posed serious risks tohuman, animal and plant life.Looking at the current status of the recycling industry in India a number ofattempts 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 whichwould 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 inrelation to the waste management.The concept of recycling is not very new in India, but looking at the actualwork 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 areno e-waste recycling plants in India yet. There are not many organizationswhich are seriously taking steps towards it.The work done and steps taken all seem to be very theoretical in approach andgood to hear but in reality nothing has seemed to take a practical shape. 8|Page
    • Business Plan: Recycling & Upcycling Plant Group-9Here is a state wise distribution of the waste produced all over India, it alsoclassifies as to which waste can be recycled, incinerated or disposed.Introduction to small/medium scale industriesThe Ministry of Small Scale Industries (SSI) is a defunct Indian governmentministry. It was merged with the Ministry of Agro and Rural Industries to formthe Ministry of Micro, Small and Medium Enterprises. The ministry was taskedwith 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 wassplit into the Ministry of Small Scale Industries (SSI) and the Ministry of Agroand Rural Industries (ARI). The Ministry of Small Scale Industries merged withthe Ministry of Agro and Rural Industries to form the Ministry of Micro, Smalland Medium Enterprises in 2007The Small Industries Development Organization (SIDO) was under the controlof the ministry, as was the public sector undertakings National Small IndustriesCorporation Limited (NSIC).The Small Industries Development OrganizationIt is the Office of the Development Commissioner for Small Scale Industries.SIDO was established in 1954 on the basis of the recommendations of the FordFoundation. It has over 60 offices and 21 autonomous bodies under itsmanagement. These autonomous bodies include Tool Rooms, TrainingInstitutions 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. 9|Page
    • Business Plan: Recycling & Upcycling Plant Group-9SIDO also provides economic information services and advises Government inpolicy formulation for the promotion and development of SSIs. The fieldoffices also work as effective links between the Central and the StateGovernments.1.D Financing NeededWe plan to invest and put in a maximum capital of Rs. 6 Crore. All the moneywill be diversified for various purposes ranging from the expenditure ofacquiring machinery to salary of employees, marketing expenses and otheressentials. 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 10 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-91.E Statement of Confidentiality ReportThe Guiding Principle of Confidentiality embodied in the language of the letterof agreement among AMT, AMTDA, and Object ware Inc. states: "no oneshould be able to use these reports to identify a company involved in anytransaction.”The report also states that the Joint Statistics Committee, composed of an equalnumber of AMT and AMTDA member representatives, shall approve anyChanges in report structure, use of and access to the data.The Joint Statistics Committee hasapproved 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.). 11 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9  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 twoAssociations.In addition to the safeguards described above, additional provisions include:• Access to USMTC data limited to the Object ware Inc. staff directly involvedin providing services and producing reports. 12 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-92. Executive summaryOur business has a start - up capital of Rs. 2 Crores. We have allocatedresources to different spheres of the business with much thought andapplication. Our basis consists of the up cycling of waste wrappers, clothpieces, broken wood pieces, and waste plastic and metal containers. We plan tofocus mainly on plastic and polyester and terracycled papers coming frommasala pouches like pan parag, plastic bottles of mineral water as well as softdrinks and plastic from almost all packed food items like potato chips etc...These items which would‟ve been a waste could actually be used fortransforming 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 inhouses or for fertilizers, pesticides or other materials used for farming. The onlymaterial 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 majorMNC‟s who are the major contributors to the kind of resources we are lookingfor. Some of these companies include Pepsi and coke India, Parle, HUL & PanParag. We can ask each of these companies to sell their used bottles andpouches to us as well as their defected products. This is how we will acquire 13 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9our raw material which can be easily made available due to the large amount ofsale of products in these categories in India.Our project has been formed for the purpose of not only earning huge profitsbut also create awareness about the need of saving the environment. Hence, weare expecting a lot of support when we initiate this revolution because of thesocial cause attached to it. This organization will help take care of excess litterand reuse and up cycle things that would have just added to the pollution if notacted upon. Incineration adds to air pollution while dumping of reusableproducts on land chokes the soil and makes it impossible to grow any crops onthat land.Being Realistic, our products will be slightly higher priced than the normal onesin the market because the process of up cycling is more expensive thanmanufacturing from the start. The raw material has to be made suitable for safehuman use. Because of this technical difficulty, we are starting our businessoperations in Bangalore first which will gradually followed by setting upoperations in other Metropolitan cities of Delhi, Kolkata, Mumbai andHyderabad.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 ofpeople paying a little extra for the green products is about 7 - 8% andfortunately, this % is increasing. Considering the Metro cities, this % would beabout 20% since people have a better purchasing power, they are more educatedand they are more aware of the importance of the eco - friendly products.The purpose of selection of business 14 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Personally both of us did think of many topics and had scrutinized quite a fewon various parameters. The reason why we selected this plan is because it is avery feasible plan and the need of such a business is very much required at thispoint in our country. Taking the example of Karnataka alone, every week weread an article about waste being dumped or burnt in the outskirts of Bangalorewhich is causing a number of problems like pollution and the release of verydangerous gases. If the same waste can be actually used and transformed intoproducts of daily use then we are sure we‟ll be successful in the contributionprocess of saving Mother Earth.VisionSolutions for a green planetMissionTo become the worlds leading Consumer Company for recycle products andservices 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 particularlyplastic.- No contamination of ground or water by dumping or burning of these harmfulchemicals.- 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 alsoabout the advantages of such products and hence the search for customers couldalso end there. 15 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-93. Industry Analysis3.A Future outlook & trendsFuture Outlook:The Evolution of the Disposable SocietyIt 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. Peoplewere crowded together in tenements, throwing their garbage into the streets. Buta dedicated urban reform movement helped to establish municipal sanitationdepartments. Uniformed crews began to provide convenient collection anddisposal of municipal waste. The system was overseen by municipal engineerswho convinced local elected officials to invest in modern waste disposaltechnologies such as "sanitary" landfills, waste-to-energy combustion facilitiesand recycling plants.As time went by, the waste stream changed. In 1905 municipal waste consistedof household ashes from cooking and heating (75 percent), kitchen scraps (16percent) and miscellaneous rubbish (7 percent). A century later, the ashes weregone, but the "miscellaneous rubbish" (todays consumer products andpackaging) had swelled to take their place.It only seems sensible, when you think about it, that there would be suchexplosive growth in throwaway products and packaging. Municipal wastemanagement is provided as a public service, perceived by citizens as a freeresource. There is no incentive to economize on waste either at the householdlevel or, more importantly, in the marketplace.Producers of consumer products never thought twice about designing theirproducts to be thrown away. It started with the convenient "no deposit noreturn" pop cans which consumers were urged to toss in the trash rather thanreturn to the store to be refilled. And it continues today with a new generationof throwaways: consumer electronics. The personal computer is the pop can ofthe cyber age, a disposable container for quickly obsolescing informationtechnology.Computer makers have shipped hundreds of millions of units without ever athought of what would happen to them when the newer, better, faster versionbecame available. And it is local cities and towns that are expected to bear thebrunt of the problem. 16 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 17 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Despite the figures being so huge no action has been really taken to eithercontrol it or reuse it. Hence, we come up with this project to propose a recyclingup cycling plant which could use this waste as its raw material and make betteruseful accessories out of it.The Future of WasteSo what is the alternative? At the same time that North American cities andtowns were beginning to budget for recycling, there was a quiet policyrevolution underway in Europe and the Canadian province of British Colombia.There, governments and a handful of citizens were questioning the century-oldassumption that local communities should clean up after the DisposableSociety.A new waste policy known as Extended Producer Responsibility (EPR) has ledto the adoption of laws in many parts of the world that require any companythat sells a consumer product to provide "cradle-to-cradle" take-back service toits consumers. In British Columbia these laws are being introduced one productcategory at a time. First the producers of paint were called to the table andrequired to set up a program to take back and recycle their products fromconsumers. Then the producers of pesticides, pharmaceuticals, fuels, and paintthinners. Most recently the producers of packaged motor oil and oil filters. Soonit will be tires and batteries. Then British Columbia will likely follow Europesexample and require EPR for electronic products.Cities and towns in British Columbia are now able to ban these products fromtheir waste management programs, reminding citizens to look to the producerfor the waste solutions. People living in British Columbia imagine a day whencities and towns will devote their resources to developing state-of-the-artcomposting and sewage treatment systems - not to mention libraries, parks andschools - while recycling of consumer products and packaging will be a thrivingcommercial activity. It will be carried out in what some like to call "discardmalls." It will be a profitable activity because products will be designed forrecycling and reuse, rather than for the landfill.This is the New American Dream - that the consumer products industry caneliminate waste by effectively managing its resources. It will take conscientiouscitizens to send this message to our civic leaders. 18 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9While we must currently make do with recycling, it is only one small part ofwaste management and we can do much better. As long as communitiescontinue to pick up after producers of disposable products, producers will neverlearn 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) Global e- waste management Weight (Must Eco Capitalist, AtteroAttributes & services Total 100%) Kengeri Recycling (GEMS), Sarjapura RoadProduct 30 4 2 3Product Price 40 4 3 4Distribution 15 3 3 3Location 15 5 3 2Total 100% 16 11 12 Potentially Upcoming MainConclusion Advantageous Threat competitor 19 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-93.C Market SegmentationDEMOGRAPHIC  Income: Medium and High  Social class: Any class  Occupation: Corporate, young studentsPSYCHOGRAPHIC  Lifestyle: who wouldn‟t mind paying a little extra for a cause.  Outlook: who are willing to save the environmentBEHAVIOURAL  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. 20 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-93. D Industry & Market ForecastMarket Forecasting 2005 2006 2007 2008 2009Potential Growth CAGRCustomersMunicipalitieswith treatment 1% 34 34 34 34 34 0.00%plantCompost 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 GrowthThe possibility of growth in this market is realistically huge. Consider thefollowing 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 PatternsTo be a player in the organic fertilizer and soil produce market, Mid-AtlanticRecycling identified market needs to gain an overall competitive advantage. Thefollowing explains our products 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 21 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 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 spaceSales ForecastThe table below outlines the sales forecast and cost of goods sold. The forecast isbased on reasonable sales projections within this very large market.An additional revenue stream will be the collection and removal of sawdust, woodchip, and bark from the International Paper Company on a full time basis; thecontract for this work has been won. The sawdust materials collected will be usedin the composting process. 22 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 Sales Forecast 2007 2008 2009Unit SalesSawdust collection services in hours 13,440 13,440 13,440Waste acceptance in tons 10,640 25,920 51,840Compost sales in tons 14,776 36,000 72,000Total Unit Sales 38,856 75,360 137,280Unit Prices 2007 2008 2009Sawdust collection services in hours $14.20 $14.77 $15.36Waste acceptance in tons $18.00 $18.00 $18.00Compost sales in tons $50.00 $52.50 $55.13Sales 2007 2008 2009Sawdust collection services in hours $190,848 $198,509 $206,438Waste acceptance in tons $191,520 $466,560 $933,120Compost sales in tons $738,800 $1,890,000 $3,969,360Total Sales $1,121,168 $2,555,069 $5,108,918Direct Unit Costs 2007 2008 2009Sawdust collection services in hours $0.71 $0.74 $0.77Waste acceptance in tons $0.90 $0.90 $0.90Compost sales in tons $7.00 $7.35 $7.72 23 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 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 $612,6884. Business Description4.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 BackgroundRituparna DuttaShe is currently a student in Alliance University and is pursuing MBA. Shecompleted her graduation from PES Institute of Applied Science in Bangalore. Anenthusiast by nature, she has believed in exploring opportunities and has triedbeing adventurous with whatever she does. Though she had the opportunity ofestablishing her career as a Business Consultant, she opted to believe in her ideasand go ahead with the plan of starting a new venture which she believes would notonly be successful financially but would also help in saving the environment fromthe huge amounts of waste disposed every day. Her biggest assets are confidence,commitment, thorough knowledge about the industry and financing abilities. 24 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Ritesh AgarwalCurrently pursuing his MBA in Alliance University. He completed his schoolingfrom Sri Aurobindo Memorial School in Madhepura. He has been involved inmany college level projects relating to marketing and EntrepreneurshipDevelopment and has considerable amount of experience in formulation of plansand projects. Like his partner, even he believes in being adventurous and doingsomething for the environment. His biggest assets are his Marketing techniquesand knowledge of the local environment.Sunam PalCurrently in pursuing his MBA Alliance University. He did his engineering inElectronics. 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 JacobHe is currently pursuing his MBA from Alliance University, Bangalore. He hascompleted his engineering in electronics & communication from Musaliar Collegeof Engineering & Technology. He is involved in many social organizations likeNGO to have a betterment of life of people. He is also an active participant insocial campaigns conducted by Greenpeace. His interests include travelling,reading and other social activities to provide a better life for the fellow being. Hehas always aspired to become an entrepreneur.Ramanathan K.He is currently a student in Alliance School of business and pursuing PGPM. Hedid his schooling from Jawahar higher secondary school in Neyveli, Tamil Naduand 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 alongwith people from different places. He is very good in analytical skills and peopleskills. He wishes to be an entrepreneur and contribute towards improving the lifeof people. 25 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-94.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 customers 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 26 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-95. Production Plan5.A Manufacturing Process Including sub contract/Outsourcing5.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 cost5.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 tool5.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 27 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-95.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. 28 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-95.B Physical Plant with complete layout 29 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-95.C Machinery & necessary equipment’sMachineryWe use two kinds of machines. The first is for the recycling of the plastic and thepaper.From washing basins for waste plastic to granule extruder, complete line ofrecycling plant can be seen on diagram. Recycling plant equipment is subject tochange depending on polymer to be recycled. Recycling plants contain washingbasins, crushing machine, agglomerate, drying unit, granule extruder andpackaging unit.EquipmentsEquipment used for sorting are Bales Breaker, mainly used for bottles washing,Conveyor Belts with different set up, Metal Detectors and Separators, withdifferent configurations and Trommels. 30 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9After separation plastic scraps should go to size reduction; in this section we willbe talking about Shredders and Granulators.A good separation is what makes the final product pure therefore there is adescription of Dry Separators and wet separation with Sink-Float Tanks andHydrocyclones.There is also some description of different ways of washing using WashingMachines with some little explanation about Pre-Washing systems, according withthe 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 inplastic recycling, by means of mechanical Centrifuges.Other equipment commonly use are also Classifiers, Dosing Units, and MixingSilo.When your scrap is clean and dry, you may want to upgrade your final productaccording 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 withPolymer Filtration and speaking about PET and any Crystal Polymer, an IVupgrade through Solid State Polycondensation.And do not forget dirt doesnt disappear but goes into Water; few words about avery 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. 31 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 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 Karnataka: Mangalore,Mysore,Hosur Tamil Nadu: Chennai,Coimbatore,Hosur,Madurai,katpadiIndustrial Kerela:Trivandrum,Alapzuawaste Andhra Pradesh:Tirupati,Hyderabad,Vijayawada,Nellore Maharashtra/Goa: Madgaon,Vascodagama,Mumbai,Pune,Thane,DadarDomestic Bangalore,Mysore,Mangalore,Madurai,Chennai,Mumba,GoaWasteMunicipality Bangalore,HosurHome Bangalore,Mysore,ChennaiAppliances 32 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 Waste Raw material location5.D Name of the suppliers of raw materials5.D.1 TATA REFRACTORIESSupplier of: Fire Bricks,Graphite Bricks, Clay Bricks.Use: To insulate high temperature inside kiln chambers & boilers.Location: Jameshdpur,Jharkhand.5.D.2 ENMASSSupplier of : Boilers, Cooling towers, chimneys.Use: To support production operations in factory.Location: Ahmedabad,Gujrat. 33 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-95.D.3 ASHOK LEYLANDSupplier of : Automobiles, Moving trolleys, mixer bucket.Use: To support internal & external logistics.Location: Hosur,Tamil nadu.5.D.4 VEDANTASupplier of : Aluminium.Use: To provide shielding to plant, machinery, and equipments.Location: Madgaon,Goa.5.D.5 SAILSupplier of : Steel.Use: To provide shielding to plant,machinery,equipments.Location: Bhilai,Chattisgarh.5.D.6 KIRLOSKERSupplier of : Cranes,Elevators,Drilling machines.Use: To support operations.Location: Pune,Maharashtra.5.D.7 Hindustan Machine LimitedSupplier of : Machines & equipment.Use: To support production.Location: Chennai,Tamil Nadu.5.D.8 SHELLSupplier of : Oils, Petro chemical, Industrial Fuel gas.Use: To support ignition at kiln, firing & support vehicles.Location: Bangalore,Karnataka. 34 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-95.D.9 Honeywell/SiemensSupplier of : Automation Systems.Use: To automate the entire production process.Location: Bangalore,Karnataka.5.D.10 JK paperSupplier of : Paper, Packaging material, card boards.Use: To help in covering, packaging.Location: Rayagada,Orissa.5.D.11 IBMSupplier of : ERP system & ETL tool.Use: To integrate the various departments & help in data management.Location: Bangalore,Karnataka.5.D.12 SR chemicalsSupplier of : Phosphate,chlorine,Bleaching agent.Use: To treat the waste & make it free from germs.Location: Ahmedabad,Gujrat.5.D.13 Dalmia CementSupplier of : Cement.Use: To support construction.Location: Delhi,India.5.D.14 HindalcoSupplier of : Coal.Use: To help in ignition & also by-products.Location: Sambalpur,Orissa. 35 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-96. Operational Plan6.A Description of company’s operationThe Waste-Glass Recycling Plant is a set of machines to produce Supersol, apumice-like light porous foamed material, from waste glass produced in thelocal community as 99% of its basic materials.The Waste-Glass Recycling Plant consists of 9 machine units, a bottle supplyhopper, a bottle conveyor, a crusher, a cullet mill, powder conveyors, apowder sifter, a mixing machine, a baking machine and a Supersol sizer; andautomatic control panels. The bottle supply hopper can hold about 4.5 m3 ofwaste glass, which is crushed into cullet of less than 6 mm in size by thecrusher. The cullet is then milled into glass powder with a median graindiameter of 35 µm by the cullet mill. The glass powder is sent to the powdersifter, which removes foreign objects and powder grains that are not of a 36 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9specified 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 thetemperature range of 700 ~ 920 degrees centigrade. The layer of glass powdermixture having an initial thickness of 15 mm is converted into a light porousslab having a thickness of about 60 mm. More than 70% of these machineshave 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 orbrown, and other cullet is mixed in secondary concrete products, asphaltpaving and blocks. The cullet, however, is low-value-added products, and itsuse in business is limited. On the other hand, Supersol, produced by theWaste-Glass Recycling Plant, has a wide range of application, such as a lightembanking material in civil engineering, a culture medium or an inorganic soilamendment in horticulture and agriculture, a purification material in waterpurification and an insulator in architecture. It is now used in various areas forvarious purposes.Glass cullet of less than 6 mm in size produced by the glass crusher is furthermilled to produce galss powder. Our cullet mill is a tube mill modified forglass cullet. Its inlet can easily take in glass pieces of different sizes andshapes, and its outlet discharges glass powder in the order of smaller specificgravities. The produced glass powder is separated from paper, such as bottlelabels, by a rotary sieve within the two-layer hopper. The cullet mill containsmany alumina balls, which collide with each other to mill cullet. The machinerequires no maintenance for about 2 years. The full-automatic operation of thecullet mill synchronized with the glass crusher enables a continuousproduction of glass powder, and has achieved a stable glass powderproduction of the specified grain size and a higher production efficiency(more than 97%).THE RECYCLING PROCESSThe recycling starts with the sorting of the mixed plastic.MIX PLASTIC sounds very dirty because coming from garbage selection andconsequently, it is. Pre-washing is provided mainly when granulator blades can 37 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9wear rapidly because of the amount and type of dirt, but here a single shaftshredder 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 applicationsbut only a decent material that goes into injection molding, lumber production andso on.In our opinion the only way to make money with this kind of recycling is to get anhigh productive line, in other words something with a throughput over 1500Kg/hour.The problem here is mainly separation and two, sometimes three, sink-float tanksare 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 materialgoes forward, water goes backwards. 38 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9This applies to almost all systems, surely to all "no chemical" washing lines but, inthis 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 theseparation problem remains)Let the trash plastic dry, wash it by centrifugal force , dry it then chop it into smallpieces again wash it using same force again dry it. Put it in a extruder and extrudeit out, it comes out in the form of strings .now, using a granulator make plasticpalletes check the melt flow index of the whole composite. Now, depending uponthe melt flow index of the composite different accessories are made up .THE UPCYCLING PROCESSThe recycled plastic is then used for making products like Tiffin boxes, pencilcases, etc. The plastic is put through machine which has special equipmentattached to it called the Dye. For making different products out of plastic the samemachine can be used but the Dye needs to be different. This Dye is available invarious types and shapes.The plastic doesn‟t really needs a different process to make different things but aseparate Dye because it needs to be molded in the shape of the desired productwhich the Dye does.These upcycled goods are packed and then distributed.Our basic distribution channels being the road transport. The selling anddistribution work is outsourced for various cities. Our distribution is mainly begoing through separate stalls in malls and shops like more, reliance mart etc. 1person is appointed in each city to make sure that these stalls are operatingsmoothly and that the representatives are giving sufficient information to ourbuyers about the recycled concept. Apart from this we have corporate tie ups withcompanies like Cisco, IBM, and Infosys who are going to use our up cycledproducts on a regular basis. 39 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9UPCYCLING PLANTAn up cycling plant has nothing very new in the machinery, but the Dye plays avery important role. To make anything new out of recycled paper all you need isa different kind of Dye every time. Each Dye has a different shape and size so asto give your products the desired design.6.B Location Advantage, Zone & Tax benefitLocation:  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 storedTax 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. 40 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-96.C Flow of order for goods & servicesPROCESS FLOW CHART RECYCLING PROCESS FLOW CHART SEPARATION OF PLASTIC FROM OTHER WASTE MATERIALS WASH PLASTIC WITH CENTRIFUG FORCE MAKE DIFFERENT ACCESSORIES (UP CYCLING) EXTRUDE IT IN THE FORM OF STRINGS CHECK THE MELT FLOW INDEX OF THE WHOLE MAKE PLASTIC PALLETES THROUGH A COMPOSITE GRANULATOR 41 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 LIFECYCLE OF A PAPERThis is the lifecycle of a paper how it passes the various stages starting from thecustomer where he uses the paper to the final stage where he ends up reusing itafter 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. 42 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 LIFECYCLE OF A PLASTICThis is the lifecycle of a plastic how it passes the various stages starting from thecustomer where he uses the plastic to the final stage where he ends up reusing itafter 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. 43 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 6.D Proximity of suppliers & access to transportation ProximityS. Mode of Transport Suppliers Product Location (Distance in Kmno Transportation Agency ) TATA Railway Good1 REFRACTORIES Bricks Jameshdpur 1420 Km Train IRCTC2 Enmass Boilers Ahmedabad 1505 Km Trucks ( Road ) Fed Ex3 Ashok Leyland Automobile Hosur Within 50 Km Trucks ( Road ) Fed Ex4 Vedanta Aluminiuma Goa 556 Km Good Train IRCTC5 SAIL Steel Bhillai 997 Km Good Train IRCTC6 Kirlosker Cranes Pune 838 Km Trucks ( Road ) Fed Ex Hindustan7 Machine Tool Machines Chennai 348 Km Trucks/Flight Fed Ex Extranet8 IBM Software Bangalore Within 50 Km Internet access Automation Personal9 Honeywell Tool Bangalore Within 50 Km Arrangements Honeywell10 Shell Oil,Gas Bangalore Within 50 Km Trucks Fed Ex Automation Personal10 Siemens Tool Bangalore Within 50 Km Arrangements Siemens11 JK paper Paper Rayagada 928 Km Flight DLF12 SR Chemicals Chemicals Ahmedabad 1505 Km Ships/Flight/Road Fed Ex Railway Good13 Dalmia cement Cement Delhi 1204 Km Train IRCTC14 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. 44 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-96.E Technology UtilizationCullet MillGlass cullet of less than 6 mm in size produced by the glass crusher is furthermilled to produce glass powder. Our cullet mill is a tube mill modified for glasscullet. Its inlet can easily take in glass pieces of different sizes and shapes, andits outlet discharges glass powder in the order of smaller specific gravities. Theproduced glass powder is separated from paper, such as bottle labels, by a rotarysieve within the two-layer hopper. The cullet mill contains many alumina balls,which collide with each other to mill cullet. The machine requires nomaintenance for about 2 years. The full-automatic operation of the cullet millsynchronized with the glass crusher enables a continuous production of glasspowder, and has achieved a stable glass powder production of the specified grainsize and a higher production efficiency (more than 97%).Powder SifterGlass powder produced by the cullet mill is sorted according to grain sizes, andpowder of the specified grain size is taken out.Connection with a powder conveyor allows the continuous sorting of powder. Inaddition, because of its closed system, no powder is released into thesurrounding environment. 45 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Powder ConveyorsPowder 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 allowfull-automatic, stable powder transfer, while powder transfer was considereddifficult before. Furthermore, since they do not use air flow, the generation ofstatic electricity is low, and no dust is released into the work environment.Mixing MachineGlass powder sorted out by the powder sifter and two types of foaming materialsare automatically measured and mixed. These materials. which are different inquantity, specific gravity and shape, are thus uniformly mixed.The mixing machine is of sequential batch type and can produce 350 kg ofpowder 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 MachinePowder mixture produced by the mixing machine is baked to make a lightporous foamed material, or Supersol. The baking machine consists of a bakingsection and an annealing section, each of which has a light, insulating andfireproof structure. The machine also has a wire-mesh belt conveyor to allowcontinuous baking. 46 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Furthermore, the baking machine is equipped with 16 burners to carry out theprocesses of preheating, softening, baking and foaming.Supersol SizerProduced Supersol blocks are broken and sorted into specified sizes.The breaker has breaking blades whose shape and material have beenspecifically designed for Supersol production, allowing efficient breaking andsorting.7. Marketing Plan7.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 users7.B Market Size and trendsGeographical Market CoverageDelhi,U.P,M.P,Punjab,Gujrat,Rajasthan,West Bengal,Bihar,Jharkhand,Chattisgarh, Orissa,Assam,Andhra Pradesh,TamilNadu,Kerela,Karnataka, Goa,Maharashtra, Madhya Pradesh,Pondicherry,Dadar. 47 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 Geographical Target Markets Sales Region State/union Territory Places TargetedHeadquarter Delhi,Noida,Gurgaon,Lucknow, Kanpur,Allahabad,Gorakhpur, Delhi,Punjab,North Delhi North Varanasi,Chandigarh,Jalandhar, west U.P,North M.P Jhansi,Baroda,Agra,Gwalior, Meerut,Ludhiana,Barelley Kolkata,Silguiri,Asansol,Bardhaman, East and West Adra,Darjeeling,Durgapur,Howrah, Kolkata North-East Bengal,Assam,Bihar Purulia,Kharagpur,Guwahati,Patna, Gaya,Baroni,Mazzafarpur Madgaon,Vascodagama,Mumbai, Central Goa,Maharashtra, Mumbai Pune,Thane,Nagpur,Bhopal, West Dadar,West M.P Gwalior,Nasik,Kurla,Dadar Chennai,Madurai,Coimbatore,Hosur Tamil Nadu,Kerela, Chennai Chennai Katpadi,Pondicherry,Kanyakumari, Pondicherry Trivandum,Cochin,Allapazua Gandhinagar,Ahmedabad,Bhuj, Ahmedabad North-west Gujrat,Rajasthan Ajmer,Kota,Jaipur,Jodhpur,Rajkot Bhubhaneswar,Cuttuck,Puri, Sambalpur,Rourkela,Balasore, Orissa,Chattisgarh, Berhampur,Paradeep,Rayagada,Bhubhaneswar South-East Jharkhand Balangir,Jamshedpur,Ranchi,Bokaro, Dhanbad,Bhillai,Bilaspur,Durg, Raipur,Korba South- Bangalore,Mysore,Managalore, Bangalore Karnataka West Bijapur,Hubli South-east Hyderabad,Vishakapatnam, Hyderabad & central- Andhra Pradesh Vijayawada,Nellore,Rajamundry east Scendurabad,Tirupati,Srikakulam 48 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Market TrendsCurrent 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 landfillswhich can receive human waste sludge. These laws take effect in 2008.Municipalities are already seeking alternative means of disposal as disposal pricesare expected to skyrocket as landfill space decreases dramatically.The organic industry now boasts sales in excess of $9 billion at retail, with growthforecast to continue at 25% per year. The demand for compost to use in organicfarming and other applications is growing rapidly.7.C CompetitionMARKET COMPETITIONThough the concept of recycling and upcycling is relatively new in India , there aresome companies already working in the field of recycling but the up cyclingconcept is totally new.The recycling companies that we came across while our research ourTrishyiraya Recycling India Pvt. LtdTPL is a wholly owned Indian subsidiary of SIMS Recycling Solutions. SIMSgroup is a USD 8.0 billion corporation having facilities in over 200 locationsacross the globe. (www.SIMS-group.com). Pioneers in the area of metals and e-waste management solutions, SIMS /TPL partner with many multinationalorganizations contributing to their corporate social responsibility goals for a ecofriendly e -waste management.Trishyiraya is focusing on four areas in India, bringing the best practices evolvedby SIMS over a period of time.• Minimizing Product Lifecycle Costs.• Controlling Toxicity.• Sustaining Resources.• Reducing Global carbon footprint. 49 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Global e- waste management & services GEMS is the company situated in Surjapura road in Bangalore with over 20years of experience in handling industrial hazardous waste, partners of thisorganization have entered into electrical and electronic waste management inIndia. Managed by a group of professionals, the team has all the expertisenecessary for e-waste management and disposal in a globally acceptablemanner. They use different techniques to convert the waste materials into usefulrecycled materials.Attero RecyclingAttero Recycling, an integrated end-to-end electronic waste (e-waste) recyclingcompany and now the first e-waste recycler to be registered with the CentralPollution Control Board (CPCB), Ministry of Environment & Forests, Governmentof India, is committed to initiate a socially-responsible movement towardselectronic waste. They mainly focus on the recycling of e- wastes and convertingto useful products Competitors located geographically. Competitor locations 50 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-97.D PricingPricing 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 51 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-97.E DistributionOur operational unit is in Kengeri, Bangalore. For distribution we areconcentrating 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 managingdiverse geographical area is Place. Place encompasses distribution channel.The best distribution channel will have the right mode of transport which will takeinto consideration ease of distribution, timeliness, cost rationalization. For longdistance transportation railways or air links is most preferred.Air links have the advantage of time reduction but are costly so in case of wasterecycling 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) 52 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Distribution ChannelsBangalore to DelhiDistance – 2076KmBest mode of Transport – Good TrainBangalore to Kolkata:Distance – 1886KmBest mode of Transport – Good Train 53 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Bangalore to Hyderabad:Distance – 569KmBest mode of Transport – Good Train/TruckBangalore to Mumbai:Distance – 984KmBest mode of Transport – Ship/Good Truck/TrainBangalore to Chennai:Distance – 347KmBest mode of Transport –Train/TruckBangalore to Ahmedabad:Distance – 1505KmBest mode of Transport –Train/TruckBangalore to Bhubhaneswar:Distance – 892 KmBest mode of Transport –Train/Truck7.F Advertising & PromotionPOSITIONING“A simple way to help the most complicated issue of this world-saving theenvironment!” 54 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Advertisements SMALL DAILY STEPS TOWARDS A SMALLER PERSONAL IMPACT C T A H P E I T E A C L O I S - T S 55 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-98. Organizational Plan8.A Form of ownershipORGANISATION STRUCTURE TOP LEVEL MANAGEMENT MIDDLE LEVEL MANAGEMENT OPERATIONS PRODUCTION DEPARTMENT DEPARTMENT HR DEPT. PURCHASE QUALITYFINANCE DEPT. DEPT. CONTROLMARKETING DEPT.SALES & DISTRIBUTIONRESEARCH & DEVELOPMENT 56 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Since our business involves two major tasks i.e. recycling and upcycling ofplastic, paper and metal , it constitutes of a number of processes and hence aformal structure for our organization should be suitable.The lower level management consists of the shop floor workers whichinclude skilled and the unskilled workers. They are involved in the collectionof the waste which is then chemically treated and is transferred to therecycling plants. This recycled plastic, paper, glass, fiber and metal is thentransferred to our upcycling plant for further treatment. The lower levelmanagement is supposed to report to their respective supervisors which are inturn coordinated by the middle management.While on the other hand, the operations department consists of:  HR DEPARTMENT  FINANCE DEPARTMENT  MARKETING DEPARTMENT  SALES AND DISTRIBUTION DEPARTMENTThese are the managerial departments which are responsible for controllingthe HR, Marketing, Finance, Sales and distribution in the organization.The Middle level management directs, supervises and coordinates theworking 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 tothe top level management in the most comprehensive manner. 57 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9The top management consists of the promoters and the board of directors.The role of the board of directors is to take strategic decisions which involvesfuture planning, goals & objectives, laying down of the budget etc. and theday to day working guidelines.The Top-level management meets at least once a month so as to discuss theprogress of the organization and to decide the further course of actions.8.B Employee DetailsNO. OF PEOPLE IN EACH DEPT. (TOTAL HEADCOUNT)Sl Department No. of peopleno.1 Middle level Managers 22 Quality Control inspector 13 Production workers 154 Finance 15 Marketing 36 HR 27 Sales & Distribution 88 Research & Development 29 Miscellaneous (guards, peons, drivers etc.) 6 Total 40Hence, we plan to employ around 40 people in all. 58 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 SALARY STRUCTURESl Department No. of Salary/person/m Total Totalno. people onth salary/month Salary/annu m1 Middle level 2 10,000 20,000 2,40,000 Managers2 Quality Control 1 3,000 3,000 36,0003 Production 15 workers Skilled workers 6 2700 14,200 1,70,400 on machine (10) Transfer/ Scrap 9 1890 17,010 2,04,120 collectors (10)4 Finance 1 6000 6,000 72,0005 HR 2 6000 12,000 1,44,0006 Marketing 3 6000 18,000 2,16,0007 Sales & 8 7000 56,000 6,72,000 Distribution8 Research & 2 6000 12,000 1,44,000 Development9 Miscellaneous 6 3000 18,000 2,16,000 (guards, peons, drivers etc.) Total 40 21,14,520 59 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-98.C Authority of Policy & PrincipalsWorking hoursThe factory workers will have to work a stipulated period 9 hours that is from8a.m. to 5p.m. There will be 2 ten minute breaks during the day at 10:30a.m. and3p.m. The lunch break will be a 40minute break from 12:45a.m.Leave policyWe have two types of leave policies, first for the Production department where allthe workers will be granted leave on all national holidays as well as the firstSunday of every month. While the operational team will have every nationalholiday as well as every Sunday as a holiday. In case any employee or workerwants to take a leave, he needs to notify the company before doing so. In the caseof 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 theemployees.Loan grant policyThe company has a very strict and conservative loan grant policy. We will grantloan only to those employees who have worked in our company for a minimum of5 years. The maximum loan the employees can apply for is Rs. 1,00,000. This loanmust be repaid with in a time span of 1 year at the rate of 5% interest per annum.Retirement PolicyThe employees must retire by the age of 60, and the pension will be granted to onlythose employees who have worked with the company for a minimum period of 7years. The factory workers will be paid 25% of their salary while the otheremployees will be paid 15% of their salary.Recruitment policyWe plan to employ only those workers who are physically fit and are suitable tothe kind of work we intend to do. To collect the factory workers we intend toapproach a contractor who would be aware of the local man power. To recruit the 60 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9employees for our operational division, we will scan through the application banksand the job portals. And any leftover vacancies will be filled by our own sources.Training and Development proceduresEach new employee who is selected for the job goes through a rigorous one weekinduction program which makes him thoroughly aware of his duties andresponsibilities on the job. Majorly, Training is required only for the productionteam. For this we plan to implement on the job training methods where in the newemployee would work under an existing employee and learn the methods ofworking on the machine.For the clerical work force here, the supervisors train the subordinates in relation tothe work to be done. Every month a mentoring session is conducted, so as to revisethe employees and workers about the company goals and objectives. Theemployees also get a chance to share the grievance they‟ve faced and the redress isgiven for the same.8.D Management Team – Key PersonalFACTORY MANAGER:-1. To plan, develop and monitor weekly / daily charging and deliveryschedules based on S & OP plan to realise targeted volumes and participate inmanagement meetings for effective interaction2. To liaison with Q.A. for timely approval of raw material and results of IPand finished goods and with Process Control Lab for In Process tests to realizestandard yields and quality of Technical& Formulations3. To liaison with Development Lab for process development needs (troubleshooting) and opportunities (for improvements) and new products.4. To identify products as per MIS for reprocessing of Non-conformingproducts and plan production for liquidation of the same to reduce inventory.5. To review monthly MIS and identify products to reduce costs. 61 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-96. To ensure the follow-up in actual practice of the critical processparameters and controlled conditions by effective implementation of use ofestablished 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 deviationsin manufacturing operations.8. To maintain awareness of unsafe working operations / environment andeffective follow - up for realisation of corrective actions9. To lead and motivate staff and workmen under control for maximisingproductivity and maintaining discipline and adhere to company procedures forgrievance 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 productionbatches (e.g.. Log sheets and Log books) and registration of any observeddeviations 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 throughplanned audits.13. To adhere to Company procedures and seek necessary support for grievancehandling and maintenance of discipline.B) PRODUCTION MANAGER:-1. He will be expected to manage the day-to-day running of the production facilitywhile maintaining a cost effective and efficient manufacturing process2. Solid commercial acumen, strong leadership and good team working capabilitiesare vital to the position3. He will have to have knowledge of quality systems and costing with the abilityto achieve targets within budget 62 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9C) SALES MANAGER:-1. He will be expected to manage the day-to-day sales while maintaining anoptimum balance between the stock left and production2. He will have to have knowledge of quality systems and costing with the abilityto achieve targets within budgetD) HR MANAGER:-1. To create and utilize an able and motivated workforce, to accomplish the basicorganizational goals2. To establish and maintain sound organizational structure and desirable workingrelationships among all the members of the organization3. To secure the integration of individual and groups within the organization by co-ordination of the individual and group goals with those of the organization4. To create facilities and opportunities for individual or group development so asto match it with the growth of the organization5. To attain an effective utilization of human resource in the achievement oforganizational goals6. To identify and satisfy individual and group needs by providing adequate andequitable wages, incentives, employee benefits and social security and measuresfor 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. 63 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-99. Finance Plan9.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 50000 80000Carriage inwards 20,000Raw materials 9000000 15000000 25000000Wastage(2% of RM) 180000 300000 500000Power & 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 34,014,167Salaries 21,14,520 21,14,520 2614520Rent 240000 264000 290000Advertisement 1500000 1000000 1500000General Expenses 100000 132500 154700Audit fees 40000 40000 40000Provident fund 264315 264315 326815Employees State Insurance 105726 105726 130726Repairs 500000 800000 1200000Telephone charge 60000 75000 95000Electricity 43500 45600 60000Maintenance 72000 90000 110000Preliminary Exp written off (20%) 300000 300000 300000Loan repaid(25% every year) 2500000 2500000 2500000 64 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Sales Tax 900,000 1,600,000 2,400,000TOTAL (C) 6,625,541 3,117,141 6,821,761 NET PROFIT BEFOREINTEREST & DEPRECIATION(B) - (C) 7,051,959 21,443,692 27,192,406 Interest on loan 1,200,000 9,000,000 6,000,000Depreciation-As per Schedule 2,010,000.00 1,779,000 1,481,100PROFIT 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 65 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 CALCULATION OF FIXED ASSETS WITH DEPRECIATION1st Year 2009 RateParticulars of Opening Closing Deprn W.D.V Additions Deletions Total Deprn W.D.VLand 0% 30,000,000.00 30,000,000.00 - 30,000,000.00Building 10% 3,000,000.00 3,000,000.00 300,000.00 2,700,000.00Machinery 15% 10,000,000.00 10,000,000.00 1,500,000.00 8,500,000.00Furniture 10% 300,000.00 - 300,000.00 30,000.00 270,000.00Computers 60% 300,000.00 300,000.00 180,000.00 120,000.00Total 43,600,000.00 - - 43,600,000.00 2,010,000.00 41,590,000.002nd Year 2010 RateParticulars of Opening ` Closing Deprn W.D.V Additions Deletions Total Deprn W.D.VLand 0% 30,000,000.00 30,000,000.00 - 30,000,000.00Building 15% 2,700,000.00 - 2,700,000.00 405,000.00 2,295,000.00Machinery 15% 8,500,000.00 8,500,000.00 1,275,000.00 7,225,000.00Furniture 10% 270,000.00 270,000.00 27,000.00 243,000.00Computers 60% 120,000.00 120,000.00 72,000.00 48,000.00Total 41,590,000.00 - - 41,590,000.00 1,779,000.00 39,811,000.00 66 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-93rd Year 2011 Rate Particulars 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 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 67 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 PROJECTED BALANCE SHEETPARTICULARS 2,009 2,010 2,011CAPITAL & LIABILITIES Capital 43,841,959 54,506,651 74,217,957Long term loan 7,500,000 5,000,000 2,500,000Current Liabilities 226,210 375,425 550,000Creditors 750,000 1,500,000 2,500,000TOTAL 52,318,169 61,382,076 79,767,957PROPERTIES & ASSETSFixed Assets 41,590,000 39,811,000 38,329,900Investments 1,500,000 1,500,000 1,500,000Current AssetsClosing stock 750,000 1,333,333 2,000,000Tools 400,000 600,000 800,000Cash and bank balances 5,128,169 13,237,743 30,038,057Debtors 1,250,000 3,500,000 6,000,000Advances & Deposits 500,000 500,000 500,000Prelimenary Expenses 1,200,000 900,000 600,000TOTAL 52,318,169 61,382,076 79,767,957 68 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-99.B Cash Flow statementParticulars 2009 2010 2011 Projection Projections Projections sSOURCES OF FUNDSCapital - --Net profit before tax & after Depreciation 3,841,959 10,664,692 19,711,306Depreciation 2,010,000 1,779,000 1,481,100Write off of Prelimenary Expenditure 300,000 300,000 300,000Decrease 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 69 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9APPLICATION OF FUNDSFixed Assets - - -Increase in investments - - -Net Increase in Current Assets 2,000,000 3,033,333 3,366,667Net decrease in Current Liabilities 2,500,000 2,500,000 2,500,000Income tax - --Drawings - --Loans Given - --Total B 4,500,000 5,533,333 5,866,667Opening Balance 2,500,000 5,128,169 13,237,743Closing Balance 5,128,169 13,237,743 30,038,057 70 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-99.C Break-even analysis9.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 71 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-99.E Sources & application of fundsLoan 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-upWe‟ll have a contract with the municipal corporations of dumping the waste atour factory on a monthly basis. We also plan to collect the waste from residentialareas as well as big town ships. Every fortnight the material comes – 2.5tonnes10. Critical Risks10.A Evaluation of weakness & threat of businessWeakness  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 higherThreats  Customers failing to understand the concept of an eco-friendly company.  Competition pouring in. 72 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-910.B Potential ProblemsTechnical challengesSince the field in which we are planning to invest is relatively new to the Indianmarket, 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 strongbut it may take us time in convincing people about its innumerous advantages.Sometimes we may observe that people are aware about the advantages ofrecycling and how helpful it is for the environment but it may be a daunting taskfor us to actually put their awareness into practice and somehow encourage them touse 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 its available, any subsequent redundancy dismissal could be unfair.Failure to properly consultIf we fail to properly carry out collective redundancy consultation, a complaintmay be made to an employment tribunal by:  a trade union or elected employee representatives  individual employees who have been dismissed as redundantThe tribunal may award up to 90 days pay to each affected employee.Financial problemsIf our business would become insolvent as a result of making the statutoryredundancy payments, assistance may be available from the Insolvency ServicesRedundancy Payments Office (RPO), though you will be expected to repay thedebt as quickly as possible.The RPO can also help if you become formally insolvent and fail to pay theemployers contributions into an occupational or personal pension scheme or owepay in arrears. 73 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-910.C Obstacle & their risksRisk - 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, butit 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 tomanage the exposed risk and convert it into a desired form.2. Risk seeking: willing to take the risk with ones money, in hope of reaping riskprofits from investments in risky assets out of their frequent price changes. Actingin 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. 74 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Types 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 actions10.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 contingencyBase 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) = 990000So, total Base estimate: (1+2+3) = 13260000 75 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Final cost estimate:-Final cost estimate = Base estimate + Project contingency = 13260000+ 265200(2% of 13260000) = 1352520010.D.2 Alternative actionsRisk 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 analysisRisk analysis is to be carried out with proper perception of risk of risk and costinvolved 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. 76 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-911. Harvest Strategy11.A Transfer of AssetCustomizing the Transfer VariantTo post the transfer, a customer-specific transfer variant XY01 was created withthe following settings:The same chart of depreciation is used in both company codes. The asset willmanage the same depreciation areas in company code AA15 as it did in companycode 1000. Therefore, it is not necessary to define cross-company depreciationareas.Transfer transaction types have to be entered for treatment of each of thefollowing: retirements (prior-year acquisitions) in the old company code, andacquisitions (prior-year acquisitions) in the new company code. The transactiontypes for handling current-year acquisitions are contained in the transaction typesfor prior-year acquisitions. 77 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Asset TransactionsAfter the intercompany asset transfer, during which a new asset master record wascreated in company code AA15, the Asset Explorer shows the followingtransactions: Display of Transactions before and after Asset Transfer 78 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9FI TransactionsLine Items CreatedTransaction types 390 and 395 are transaction types for proportional valueadjustments.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. 79 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-911. 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 companys image and can attract both employees and customers.  Recycling is easy to do - Recycling at work is straightforward and easy to do. Its easy to separate out materials to recycle from your other waste, if we get a good system in place its 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. 80 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-911.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 Analysis12.A Feasibility of the projectDrawing conclusions from our survey, we observed that 95% of the population isconcerned 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 extrapennies for the recycled products. It is also observed that around 70% of thepopulation is not aware of any company which is involved in the production ofgoods made from recycled plastic and paper. As mentioned above, the feasibilityof our project is very realistic and all the calculations have been taken according tothe market surveys. Firstly, is the acquiring of resources like land, labour,machinery, technicians etc. All these required resources will be got only afterproper research and also sticking to the budget. Next, is getting the raw material ortrash can be easily got alone by just having a contract with the local municipality. 81 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9But we have taken steps of even having yearly contracts with major MNCs.Following that will be recycling and segregating the waste and finally up cyclingthe same. We also are having an R & D center to track the latest happenings in thefield and the Creativity team which is a part of the R & D team will help us comeout 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 ANALYSISSTRENGHTS  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 82 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9OPPORTUNITIES  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 PROFILEWe are using raw materials like paper and plastic and our end products comprise ofthe following:  Disposable paper plates  Disposable glasses  Umbrellas  Back packs  Folders  Bottles used for purposes like filling cleaning agents/pesticidesOur target market is essentially the corporate houses and retail market throughstalls in different cities targeted.12.D Unique Selling PropositionWe are one of its kind in the country and our USP being that not only our productsbut even our working methodology is eco-friendly i.e. in the due course ofproduction we do not harm the environment in any manner (no pollution, no toxicsubstances produced, no exploitation of natural resources). 83 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 Hence, we have an edge over the other competitors. We create products from themost useless substances in the environment and convert them into much moreuseful products for reuse. We are an ISO certified company which produces itsproducts of international quality standards and we stick to our quality controls veryrigidly.12.E 6P’s of MarketingPRODUCT: Eco-friendly products produced by recycling and up cycling thecommon 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 willgradually followed by setting up operations in other Metropolitan cities of Delhi,Kolkata, Mumbai and Hyderabad.PROMOTION: Promotion programs will include distribution of free frooti tostudents and corporate houses on house of ECO-CAPITALISTS: Frooti becausewe will be tying up with frooti for marketing as well and its cans will haveadvertisements on it. Going to companies and educational institutions and makingthe 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 thepeople in Bangalore are aware of our company and its products. We will also putsome money on two latest trends in marketing. This includes internet marketingand sms marketing.All our marketing campaigns will include some amount of sentimental quotient toinduce the customers towards buying products made from recycled paper andhence make them feel proud by making them aware of how much they‟recontributing in saving the environment.PRICING: Our daily working cost of refining and recycling plastic comes up to 5-6Rs. Per day. This means their up cycling costs another 5-7 bucks varyingdepending on the product. Our profit margin will be less initially and would bearound Rs. 2. 84 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9PROCESS:Our raw material is dumped at our factory by the municipal corporation everyfortnight. Since we‟ve entered into a contract with the municipal corporation, theygive us only that waste which comprises of paper and plastic. Not all kind of wastecan be used for recycling and upcycling purposes. The fact remains that the wastereceived goes through thorough segregation so as to pick up the material which iscapable of going through treatments. Hence, our scrap collectors are given this jobof segregation.PEOPLE:We need technically sound people who can operate the machines and look throughthe 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 StrategyEco-capitalists have a recycling and up cycling plant that produces new accessoriesfrom the waste. We have mentioned about 6 products that our company wouldproduce. But, as our implementation strategy we will start up with only 3 productsand check the response of the target market which includes the corporates and thegeneral 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 85 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 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.MilestonesThe following table lists important program milestones, with dates and managersin charge, and budgets for each. The milestone schedule indicates our emphasis onplanning for implementation. 86 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-914. Appendix 87 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 APPENDIX-1: Questionnaire1) Are you concerned about environmental deterioration? A. Yes B. No2) 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 few6) 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. 88 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 APPENDIX-2: List of Subcontracts5.D.1 TATA REFRACTORIESSupplier of : Fire Bricks, Graphite Bricks, Clay BricksUse: To insulate high temperature inside kiln chambers & boilersLocation: Jameshdpur,Jharkhand5.D.2 ENMASSSupplier of : Boilers, Cooling towers, chimneysUse: To support production operations in factoryLocation: Ahmedabad,Gujrat5.D.3 ASHOK LEYLANDSupplier of : Automobiles, Moving trolleys, mixer bucketUse: To support internal & external logisticsLocation: Hosur,Tamil Nadu5.D.4 VEDANTASupplier of : AluminiumUse: To provide shielding to plant, machinery, and equipment‟sLocation: Madgaon,Goa5.D.5 SAILSupplier of : SteelUse: To provide shielding to plant, machinery, and equipment‟sLocation: Bhilai,Chattisgarh5.D.6 KIRLOSKERSupplier of: Cranes, Elevators, Drilling machinesUse: To support operationsLocation: Pune,Maharashtra5.D.7 Hindustan Machine LimitedSupplier of : Machines & Equipment‟s 89 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9Use: To support productionLocation: Chennai,Tamil Nadu5.D.8 SHELLSupplier of : Oils, Petro chemicals,Industrial Fuel gasUse: To support ignition at kiln, firing & support vehiclesLocation: Bangalore,Karnataka5.D.9 Honeywell/SiemensSupplier of : Automation SystemsUse: To automate the entire production processLocation: Bangalore,karnataka5.D.10 JK paperSupplier of : Paper, Packaging material, card boardsUse: To help in covering, packagingLocation: Rayagada,Orissa5.D.11 IBMSupplier of : ERP system & ETL toolUse: To integrate the various department & help in data managementLocation: Bangalore,karnataka5.D.12 SR chemicalsSupplier of : Phosphate,chlorine,Bleaching agentUse: To treat the waste & make it free from germsLocation: Ahmedabad,Gujrat5.D.13 Dalmia CementSupplier of : CementUse: To support constructionLocation: Delhi,India5.D.14 HindalcoSupplier of : CoalUse: To help in ignition & also bi productsLocation: Sambalpur,Orissa 90 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 APPENDIX-3: List of Suppliers ProximityS. Mode of Transport Suppliers Product Location (Distance in Kmno Transportation Agency ) TATA Railway Good1 REFRACTORIES Bricks Jamshedpur 1420 Km Train IRCTC2 Enmass Boilers Ahmedabad 1505 Km Trucks ( Road ) Fed Ex3 Ashok leyland Automobile Hosur Within 50 Km Trucks ( Road ) Fed Ex4 Vedanta Aluminium Goa 556 Km Good Train IRCTC5 SAIL Steel Bhillai 997 Km Good Train IRCTC6 Kerlosker Cranes Pune 838 Km Trucks ( Road ) Fed Ex Hindustan7 Machine Tool Machines Chennai 348 Km Trucks/Flight Fed Ex Extanet8 IBM Software Bangalore Within 50 Km Internet access Automation Personal 9 Honeywell Tool Bangalore Within 50 Km Arrangements Honeywell10 Shell Oil,Gas Bangalore Within 50 Km Trucks Fed Ex Automation Personal10 Siemens Tool Bangalore Within 50 Km Arrangements Siemens11 JK paper Paper Rayagada 928 Km Flight Fed Ex12 SR Chemicals Chemicals Ahmedabad 1505 Km Ships/Flight/Road Fed Ex Railway Good13 Dalmia cement Cement Delhi 1204 Km Train IRCTC14 Hindalco Coal Sambalpur 1634 Km Good Train IRCTC 91 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 APPENDIX-4: Price List of Products Products Market Price Our Product Price Pens Rs 10 Rs 7 Paper (per sheet) Re 1 10 paisePen/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 Rs 400 - 2500 Rs 200 - 500 necklaces 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 Rs 250 - 1500 Rs 100 - 500 etc)Plastic Bags (per bag) 50 paise 2 paise 92 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9 15.Referenceshttp://www.sustainabilityadvantage.com/http://en.wikipedia.org/wiki/Supplier_relationship_managementhttp://www.epa.gov/sustainability/basicinfo.htmhttp://lists.ibiblio.org/pipermail/marketfarming/2002-October/000063.htmlhttp://www.wm.com/residential.jsphttp://www.wastemanagement.in/http://www.wastemanagement.in/recycling-sustainability-and-energy-recovery.htmlhttp://en.wikipedia.org/wiki/Recyclinghttp://en.wikipedia.org/wiki/Waste_managementhttp://edugreen.teri.res.in/explore/solwaste/recycle.htmwww.waste.nl/redir/content/download/.../CS-pla%20ind_ebook.pdfhttp://apac.simsrecycling.com/contacts-and-locations/india/bangalorehttp://www.waste.nl/page/287http://wgbis.ces.iisc.ernet.in/energy/paper/wms_for_bangalore/sustainable_waste_management_system_for_Bangalore.pdfhttp://smetimes.tradeindia.com/smetimes/news/industry/2011/May/09/attero-recycling-to-set-up-e-waste-unit-in-bangalore5444372.htmlhttp://www.attero.in/http://www.inewsone.com/2011/05/09/attero-recycling-to-set-up-e-waste-unit-in-bangalore/49160http://saahas.org/downloads/ewastereport.pdf 93 | P a g e
    • Business Plan: Recycling & Upcycling Plant Group-9http://andhrabusiness.com/NewsDesc.aspx?NewsId=Indias-largest-e-waste-recycling-unit-to-come-up-in-Bangalore.htmlhttp://india.carbon-outlook.com/news/attero-recycling-set-e-waste-unit-bangalore-thaindiancomhttp://www.ipma.co.in/recycle.asphttp://www.ncbi.nlm.nih.gov/pubmed/19345395 94 | P a g e