Final business plan


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Final business plan

  1. 1. A.S.S.M.R.PVT.LTD1.INTRODUCTION a) COMPANY A.S.S.M.R.PVT.LTD is the name of the company. The main operations of the company are in Recycling of Mixed Solid Waste into valuable green products. These high quality end products are suitable for commercial and industrial use, thus extending the value chain of environment friendly processes and initiatives. By the method of Pyrolisis we recycle the solid waste. Pyrolisis is a thermo chemical decomposition of organic material at elevated temperatures without the participation of oxygen. It involves the simultaneous change of chemical composition and physical phase, and is irreversible. b) PRODUCT The residual waste is automatically segregated into 4 categories i.e. 1. Wet Organic (30%) which will be converted into compost. 2. Dry Organic (35%) which will be converted into green fuel (RDF). 3. Recyclable Waste (20%) which will be converted into recyclable plastic 4. Inert Waste (15%) which will be converted into sand. 5. Bio-Organic fertilizer is made by accelerated bio conversion process under controlled conditions using remains of fruits, vegetables, food and by-products of agro process industry.
  2. 2. 2. OPPORTUNITY ANALYSISP.E.S.T ANALYSISPOLITICAL: LANDFILL TAX, CARBPN TARGETS, LANDFILLTARGETS, PUBLIC SECTOR PROCUREMENT POLICY. Allthese need to be taken care of and carefully analyzed.ECONOMIC: technology costs, transport costs, labourcosts, market demand, competition, access to finance.All these need to be looked at.SOCIAL: public awareness, attitude towards recycling,NGO campaigns should be encouraged.LEGAL: waste protocol, facility permissions, planningsystem, contractual issues, landfill restrictions. All theseneed to be taken into consideration.TECHNOLOGICAL: sorting technology, disassemblingtechnology, end use technologies.ENVIORNMENTAL: resource availability and landfillavailability should be noticed.
  3. 3. 3. BUSINESS MODEL VALUE PROPOSITION: We will provide organic fertilizers at a lower rate to the farmers. o We provide free sand to the government for landfills. Which helps the government to save costs o Regular supply of industrial power at a lower rate. o It saves the environment from harmful waste. REVENUE STRUCTURE: Our main revenue will come from 3 factors that are: 1. Farmers 2. Industries 3. Government CHANNELS: The channel is as follows: Under Factory -
  4. 4. 1. Direct to industries 2. Farmers 3. Dealers 4. Government Under Dealers - 1. Farmers 2. Industries.The use of technology has positive impact on costs,environment and the communityReduces the consumption of land for scientific landfill with residueinertReduces air pollution caused by unscientific dumping and burningof MSWReduces health problems around the MSW dumping groundAvoids underground water contaminationReduces financial burden for MSW disposal on the Urban LocalBodiesAll product extracted and processed are eco friendlyMinimum content of biodegradable matter in processed remnantreduces methane emissionGreen recycling technology creates eco-friendly product.KEY RESOURCES: Waste generated from the households & commercial units are the main raw materials required for our process.1. Wet Organics2. Dry Organic
  5. 5. 3. Recyclable Waste4. Inert Waste Proper land and machinery will be our next key resource as all the process will be automated It does depend on the customers as there is a cycle the waste the customers produced is taken as a raw material by us to recycle and make them into green products. CUSTOMER RELATIONSHIP We will tend to develop a friendly relationship with our customers. Proper credit facility will be given to them for their payments due. We will see to it that the fertilizers n power provided will be of good quality. We will also provide a pollution free environment to the customers. PLANSOPERATIONS PLAN:Urban India produces 42mn tonnes of solid waste annually and72.5% of waste is produced by 423 class-1 cities, hence we aregoing to target class-1 cities where we can easily locate our targetcustomers and companies. Waste management will be
  6. 6. implemented by targeting a specific locality which would coverabout 1000 households in the pilot phase. A government tie-up forwaste collection would also ensure a steady supply of revenue as acompensation for the work done on their behalf.Waste collection will be done by a team of workers who wouldcollect domestic waste from the specified households each day.We will also partner with local dealers and directly with ragpickers for collection of waste. Bins would be placed in publicplaces like Malls, cinema halls, schools and hotels. The wastecollected will be sorted at source site and transported to our‘Waste Treatment Site’. Paper, metal, plastic and glass will besold to the recyclers at market prices whereas vegetable and otherorganic waste would be recycled in-house to produce productmethane gas and organic manure. The by-product producedwould be marketed and sold to organic farming firms which arein need of organic manure for their farms.In order to increase the environmental awareness, we will partnerwith various Malls, Schools and others to organize RecyclingDrives, Awareness Campaigns, Environment Weeks andWorkshops to reach the people and spread our message of CleanCities and Sustainable Living.FINANCIAL PLANThe business would take about 13 months to attain break evenconsidering the high cost of waste collection in the initial phases.The return on Investment (ROI) on an investment of 16.5 Lakhsis about 20.2% by a year of operation. The total capital requiredfor starting up the waste management venture would be 38.6Lakhs. There is a fixed cost of operation for purchasing land andtrucks for transport which is close to 16.5 lakhs. Variable cost ofoperations for a year is 22.7 lakhs per year. We plan to obtain thisusing a bank loan to the tune of 30 lakhs. We are also looking at
  7. 7. rising funding through government incentive scheme to the tune of 5 lakhs and the rest would be funded by self and family as an equity share.Costs Amount Revenues AmountFixed Costs Selling Manure 67800Cost of buying Mini Trucks Selling(2 No’s) 1000000 industrial fuel 288140 Selling RecycleLand for decomposition 350000 Material 151300 GovernmentMachine Costs (20) 200000 Revenues 100000Variable Costs Total Revenues 607240Driver Annual Salary 54,000Helper Annual Salary 42,000Fuel Costs 45000Factory on Rent 240000Collection Agents (10) 360000Machine HandlingEmployees(5) 300000Sales team (5) 360000Management Personnel(1) 120000Machine Maintenance Cost 20000Electricity Cost 120000Telephone Cost 12000Other expenses 60000Vegetable waste fromdealers 600000Total 3283000 MARKETING PLAN 4. MARKETING STRATEGY
  8. 8. A.S.S.M.R personnel will call on hauling firms to advise them ofA.S.S.M.R’s facility, and provide maps to the site, hours, andpricing.A.S.S.M.R will offer similar tipping fees charged by other landfills,yet emphasize time and fuel savings, wear and tear savings, andlonger operating hours to all users. A.S.S.M.R will considercontractual incentives in certain instances and circumstances toincrease profitability. Hauling waste with A.S.S.M.R road tractorsshould provide financial incentive to waste collection Municipalfirms. This is a simple, intuitive solution, not employed by otherlandfills.A.S.S.M.R will attempt to secure tonnage from various cities.A.S.S.M.R wills Soffer price incentives in order to win long-termcontracts with many of these municipalities. Generating an importstream will be accomplished by the previously mentioned tactics aswell as an advertising campaign within industry.MISSIONA.S.S.M.R’S mission is to provide the highest quality landfillexperience. We exist to attract and maintain customers. When thismaxim is adhered to, success will be ensured. Our services willexceed the expectations of our customersMARKETING OBJECTIVES Maintain a constant revenue stream. Increase the amount of o t of state refuse by 2.5% a quarter. u Improve the local public perception of A.S.S.R’s facilitiesTARGET MARKETS
  9. 9. Landfills or transfer stations are selected, if dumping fees are thesame, solely due to the proximity of the waste haulers route totheir facility. Most likely, A.S.S.M.R will not capture the businessfrom hauling firms whose facilities are more than 100 miles distant,unless they need to dump their load after the closing hours of theother facilities. On the other hand, the hauling firms whose routesare close to the landfill will find these locations a boon to theirbusiness.The target market can broken down into three potential customergroups, small haulers, "big three" haulers, and private haulers.POSITIONINGA.S.S.M.R will position themselves as a clean, convenient landfillserving the metropolitan areas as well as out of state sources. GoodEarth will leverage their competitive edge to achieve the desiredpositioning.GER intends to offer clean facilities with easily accessible pavedroads as opposed to dusty or muddy, foul-smelling landfills.A.S.S.M.R will maintain the same price structure as competinglandfills, but with longer hours of operation. The savings to thewaste collection companies will be driving time, fuel, wear and tearon the vehicle, and longer hours of operation.DOMESTIC MARKETDomestic market development programs act to counter-balanceForeign demand by developing local markets for materials that will,In turn, create jobs and broaden the domestic tax base. This notOnly protects what remains of American manufacturing, butAlso insulates India from foreign market volatility. Manufacturingin Asia and other parts of the world will continue to be cheaper dueto low labour rates and the overall low cost of production, but the
  10. 10. importance of improving domestic distribution channels forrecovered materials is vital to maintaining our foothold inrecovered materials markets.MARKETING MIXA.S.S.M.R’s marketing mix is comprised of the followingapproaches to pricing, distribution, advertising and promotion, andcustomer service. Pricing- The basic pricing metric is a per ton charge. Distribution- All of A.S.S.M.Rs services will be performed at the facilities that they operate. Advertising and Promotion A.S.S.M.R will be using three different tactics to accomplish their advertising goals: phone soliciting/networking, sales promotions, and advertisements. Customer Service- Exceptional customer service will be necessary to develop long-term, mutually beneficial relationships with customers. Place – Our Company would be establishing at all over the places of the country.MARKETING RESEARCH All of A.S.S.M.Rs marketing research has been based on the management teams first hand empirical observations and experience from within the industry 5. KEY PARTNERS 1. Main partners of this company would be the 5 of us 2. Suppliers: All the Municipal Corporation who collects the waste will be the main suppliers.
  11. 11. 3. Finance: Banks and private investors.4. Licenses: This are the licenses which we need: ISO 9001:2008, ISO 14001:2004 & OSHAS 18001:2007 TOP MANAGEMENT TEAM Team includes: The Board of Directors. There will be 3 managers namely: Operations manager, factory manager, Sales manager. The operations and the factory manager will be responsible for the functions of Wet organic Dept., Dry organic Dept., Recyclable and Inert. 6. ORGANIZATIONAL STRUCTURE Our tentative Organizational Structure is: Managing Directors Supervisors
  12. 12. Subordinates/WorkersIn the initial stages we will hire minimum amount of workersto start the business. Afterwards we will continue hiringaccording to the extension plan.7. PROPOSALWe will offer you stake of 20 %. We will you give profit after3 years. Our NPV is at the rate of 30%. Submitted by – Group 4 Advait Bhobe Raunak Vasandani Sangram Korekar Shruti Rauniyar Meghna Singh