recycling of electronic waste afely and profitably

1. • Infographic Style
Recycling Electronic Waste “E-Waste”
Business Plan
March, 2020
By:
Sherin Haroun El Rashied

2. Agenda
Executive Summary
01
The E-Waste Industry
02
Our Idea/Project
03 The Business Study
04

3. Executive Summary

4. What is
Electronics
Waste?

5. Why Electronics
Waste is Important?
Rich Source of Raw Materials.
Old electronic devices contain toxic material.
International Movement of Hazardous Waste.
Solid Waste Management.

6. • Electronics waste, commonly known as e-scrap or e-waste, is the trash we
generate from surplus, broken, and obsolete electronic devices.
• E-waste or electronics recycling is the process of recovering material from old
devices to use in new products.
• Unfortunately, the majority of these electronic products end up in landfills,
and just 12.5% of e-waste is recycled.
Electronics Waste – Definition
Apple revealed that it recovered
2,204 pounds of gold worth $40
million from recycled iPhones,
Macs, and iPads in 2015.

7. Lifecycle of Electronics

8. The E-Waste Industry

9. Market Outlook - Globally
• The amount of worldwide e-waste generation is expected to exceed 50 million tons
by 2020, with an annual growth between 4% and 5%.
• The amount of global e-waste is expected to grow by 8% per year.
• Roughly, 40% of e-waste generated in the U.S., Canada, and Europe is exported to
Asia, a trade flow that is a source of considerable controversy.

10. Market Outlook - Globally
The major players in this e-waste management market
include:
1. Aurubis AG (Germany),
2. Boliden AB (Sweden),
3. MBA Polymers, Inc. (California – U.S.),
4. Electronic Recyclers International, Inc. (U.S.),
5. Sims Metal Management Ltd. (Australia),
6. Umicore S.A. (Belgium),
7. Stena Technoworld AB (Sweden),
8. Tetronics (International) Ltd. (U.K.),
9. Enviro-Hub Holdings Ltd. (Singapore), and
10. Global Electric Electronic Processing Inc. (Canada).

11. Average No. of
E-Waste tons
Worldwide

12. Market
Outlook -
Locally
• Electrical and electronic equipment waste is one of the fastest growing waste streams in the
world and Egypt is no exception. According to the latest report by Global E-waste Monitor,
Egypt is one of Africa's biggest e-waste-generating countries at 0.5 million metric
tons annually.
• Recycling this waste is the right thing to do not only for Egypt's ecology, but for its economy
as well.
• Egypt’s Ministry of Communications and Information Technology partnered with Sustainable
Recycling Industries (SRI) of Switzerland in 2016 to implement standards for handling e-
waste for the first time ever in Egypt.
• There are currently 4 factories in Cairo that recycle e-waste. Their main challenge seems to
be getting enough waste to recycle. Although Egypt produces large amounts of e-waste,
most of it is processed by the informal sector.
Globally, 15-20% of e-waste is recycled while only 5% of e-waste is processed
in the Middle East and North Africa. The rest is usually dumped in landfills.

13. The Business Study

14. The
Opportunity

15. Business Opportunities
• Egypt produces large amounts of e-
waste:
• Mass Production.
• Mass consummation.
• Mass disposal.
• Less number of competitors.
Local Market Study
• The team member knowledge.
• Management Ownership:
• Factories.
• Partners (NGOs,
Governmental partners).
Internal Capacity
• Collaboration with shipping
companies.
Collaborative Logistics
• Informal Workers.
• Culture resistance.
• Initiative ‫لألخضر‬ ‫اتحضر‬
Analysis of Local Industry

16. SWOT Analysis
Our main Strength lies in the power of our team; our workforce. We have a team with excellent qualifications
and experience in various niche areas in the recycling industry.
However, the Weakness that we may face that it might take some time for our company to break into the
market and gain awareness of consumers.
On the other hand, we have great Opportunities, as E-waste-recycling industry is massive considering the
number of individuals who considered as a source of raw materials, thus we are ready to take advantage of
any opportunity that is available in the industry.
Finally, the Threat we may face in our project will be related to government policies
S
W
O
T

17. External Environment
• Stability of Government.
• Social Policies.
• Laws and Regulations.
• Waste management.
• Recycling.
• Attitude towards & support for
renewable energy.
• Innovation.
• Technology level in the country.
• Disposal income reflected in
consummation.
• Fiscal Policies.
• Population demographic.
• Lifestyle and trends.
• Population growth.
• Culture & attitude towards E-
waste.
PESTEL

18. Market Analysis
Market Trends
Governments all over the
world and even international
Non – Government
Organizations are in the
forefront when it comes to
campaigning in favor of
recycling materials to
generate raw materials for
industries as against tapping
virgin raw materials.
Target Market
We are certain that there is a
wide range of manufacturing /
production factories that
cannot successfully run their
businesses without sourcing
for recycled electronic
materials from us.
There are currently four
factories in Cairo that recycle
E-waste.
Competitive
Advantage
Our competitive advantage
lies in the power of our team;
our workforce, in addition to
partners; Ministry of
Environment and Ministry of
CIT.

19. Value Proposition
• Peace of mind.
• Increase awareness about E-waste.
• Health environment.
• Bounce.
• Free space at home.
• Get rid of different E-waste.
• Our Project.
• Keep the old device.
• Try to sell the old device.
• Free of charge.
• Save way to get rid of E-waste.
• Educate about green ICT.
• E-waste take spaces in homes.
• E-waste have negative self-impact on
health.
• Fear of hacking data on devices.

20. Business Model “Lean Canvas”
Consumer:
• The Lack of knowing how
to get rid of E-waste.
• Regulation, Laws &
Administrative
procedures.
• Educate E-waste
management.
• Keep it as a trash.
• Sell it (personal security
issues).
• # of Consumers (5000).
• # of Partners .
• 4 factories.
• 10 corporate for e-
voucher.
Consumer:
• Get rid of E-waste.
• Earn points.
• Easy access to portal
Factories:
• Material.
• Increase
productivity.
• Happy Customers.
• Happy Environment.
• TV & Radio “awareness
program” sponsored by E-
waste factories”.
• Website & Social media.
• Direct marketing mails.
• Telesales.
Consumers:
• Group age:
• Women
• Youth
(16- 25)
Rrecycling factories.
• Consumers.
• Deals with Recycling Factories (25% profit margin).
• Startup Cost.
• Fixed cost (Storage – portal - PCs).
• Variable Cost (Salaries – Marketing - Logistics
“delivery”).
• Ministry of
Environment.
• Ministry of CIT.
Our Project

21. Competitors Analysis
RecycloBekia
• Is an electronic waste recycling company based in Egypt and serving the Middle East and North
Africa (MENA) region.
• They are the first company in the Arab world offering green recycling of electronic waste and
safe data destruction services.
• They are B2B.
• Their slogan is “Recycling Army”.
Informal Workers
• Collect e-waste and sell it to workshops or waste recyclers, who usually dismantle the items and
sell each material independently.
• They don’t know about the importance of E-waste or how to deal with.
• Ahmed Yehia, head of the International Technology Group, one of Egypt’s biggest e-waste
recyclers, those informal waste recyclers collect most of the e-waste produced in the country,
leaving very little supply for formal recyclers. “They sort it and export it in bulk as waste with zero
government oversight,” he said.

22. Production costs exceed estimates.
Government regulations and laws.
Informal Workers.
Difficulty in finding qualified
employees.
Lack of consumer awareness about
how to get rid of E-waste.
Risk
Analysis
1
2
3
5
4

23. Raising
Culture
awareness
on Ewaste
• The first International E-Waste Day, has
been developed by the WEEE (waste
electrical and electronic equipment)
Forum as the first International E-Waste
Day is being held on the 13 October to
promote the correct disposal of waste
electrical and electronic equipment
throughout the world.
• International E-Waste Day will aim to
raise the public profile of responsible e-
waste recycling and encourage
consumers to recycle their e-waste with
the resulting increase in recycling rates on
the day itself and into the future.
International Local
• There is a lack of awareness about how to
get rid of E-waste.
• Our Projectaiming to build awareness
among consumer about the importance
of E-waste recycling.

24. Our Idea/ Project

26. • We are a start-up company working in the field
of electronic waste by collecting it from users
and reselling it to the beneficiaries for recycling
“Broker”, through online portal and mobile
application.
• With Win-Win solution, we are going to have
partnerships with recycling factories.
• Our main target segment will include
“Consumers (Women & Youth with age 15-25
and Rrecycling factories”.
Executive Summary

27. Our Main
Goals
Revenue Generation
Employment Creation

28. Our vision is to be a leader in providing a better
solution for green environment for the whole
world.
Our mission is to be online broker that help
people get rid of their electronic waste in a safe
and profitable way for them and the stakeholders,
In addition, we are aiming to build awareness
among consumer about the importance of E-waste
Recycling.

29. Our Service (Operation)
Consumer
•E-waste (focus on IT
devices).
Portal/Mobile
Applications
•Create user account,
log to account, fill form.
•Adding bounce to user
account (1,000 Point =
100 L.E.) (Points to be
determined upon the
product as listed on
portal/App).
•Points to be redeemed
as e-voucher – deals
with: “Hyper markets –
Mobile shops – …etc”.
Collect E-waste
•Customer services to
call back and arrange
date to collect E-waste
free.
Sort Ewaste
•Mobiles, PCs, Laptops,
Scanners, Printers,
iPODs, Tablets..etc.
Delivery
•To E-waste factories.

30. Management Strategy and Marketing Strategy
KaraKeb,Consumer to Business (C2B) marketing.
KaraKeb, Generic competitive strategy is differentiation.
KaraKeb, main market strategy is Market Penetration.
“The first step toward a successful marketing campaign is a strategic position.”

31. Location
KaraKeb, will operate in
Greater Cairo “6th of October
city – Giza Governance”,
mainly near industry zone.
The location is
approximately 20 miles from
downtown.

32. Company’s
Legality
KaraKeb, will be formed as a Limited Liability
Company “LLC”, which will be closed due to the limited
liability of its shareholders equivalent to their shares'
values in the capital of the company. Therefore, it may be
defined as a private company whose owners are legally
responsible for its debts only to the extent of the amount
of capital they invested.

33. Ownership
• Deals with Recycling Factories.
• Deals Hyper markets, Mobile
Shops………etc.

34. Organization Chart
Board
of
directors Manager 1
Operation 2 Employees
Marketing
&Media
2 Employees
Manager 2
Management 2 Employees
Transportation 1 Employees
Manager 3
PR 1 Employees
CRM 1 Employees
Manager 4
HR 1 Employees
Finance 1 Employees
Function-Based Hierarchy

35. Time Plan
3 Months 1 Month 1 Month 1 Month Go live
Preparation
(Rent office,
warehouse and
Tracks)
Legalization Partnership &
Deals
Hiring and
Marketing Operate
6 months to start

36. Financial Study

37. Required Investment
EGP 1,000,000
NP (1st Year)
14%
Company Value (After 5th year)
14.5M

38. Market Cost
Calculating
Model for
Electronic
Waste
Management
• The focus of this Financial study was to create a cost calculating model for the collection of E-
Waste at KaraKebcontainer stations.
• The purpose of this model is to predict the expenses of a process by organizing and analyzing
information and the activities that make up the process.
• The finalized model was used to determine collection costs from consumers/companies, and
the estimated revenues for KaraKeb.
• The cost includes all bonus points to be distributed to consumers, transportation, collection,
sorting, shredding, and dismantling costs.
• The revenues includes the brokerage price on each ton of E-Waste delivered to recycling
factories.

39. Assumptions

40. Income
Statement

41. Company
Value
Years - 1 2 3 4 5
Year0 Year1 Year2 Year3 Year4 Year5
Intial Investments 1,000,000 (1,000,000)
Free Cash Flow (EBIT-CAPEX) 286,000 3,321,800 5,589,880 8,114,004 10,963,319
Net Free Cash Flow (1,000,000) 286,000 3,321,800 5,589,880 8,114,004 10,963,319
Discount Rate 18.90% 240,538 2,349,686 3,325,500 4,059,829 4,613,524
PV 14,589,077 14,589,077 240,538 2,349,686 3,325,500 4,059,829 4,613,524
NPV 13,589,077
Internal Rate of Return 177.4% 177.44%
Payback Period 1.5
Shareholders 10,941,808 75%
Investors 3,647,269 25%
Value of Company 14,589,077