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Spark the rise Recycle e-waste


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Spark the rise Recycle e-waste

  1. 1. Team – SHIIVIN TIKOO | SHASHWAT MITRA<br />Recycling e-waste<br />
  2. 2. Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />The Idea<br />“Set up an e-waste recycling unit by leveraging on B2B & B2C networks for e-waste collection and recovering recycled gold and other precious metals”<br />
  3. 3. Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />The menace of e-waste<br />E-waste definition: Any electrical or electronic appliance that has reached its end-of-life<br />Mostly generated in large cities like Delhi, Mumbai and Bangalore<br />E-waste recycling units mainly operated by an entrepreneurial informal sector<br />Currently, e-waste recycling system is purely market driven; approx. 3% of e-waste reaches authorized recyclers<br />
  4. 4. Why Recycle?<br />Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />Extraction of precious metals like gold, silver, copper etc.<br />Prevent leakage of hazardous chemicals into the soil<br />Business Potential<br />Benefit from future government subsidies<br />Organized Players: Less than 5% of market presence<br />Our Target  95% of the informal market<br />
  5. 5. Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />E-waste statistics<br />Source: Tata Strategic Analysis, IDC, Crisil, KPMG<br />
  6. 6. Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />Waste estimation from Mobile phones <br /><ul><li>India is the 2nd largest market for mobile handsets
  7. 7. 525.65 m mobile phone connections (Oct 2009)
  8. 8. Only 3% of customers recycle their mobile phone handsets globally
  9. 9. 80% of used phones end up in drawers/ cupboards or are disposed of in an improper way
  10. 10. Mobile phones and other types of e-waste
  11. 11. takes up large amounts of space in landfills
  12. 12. leak potentially harmful chemicals into drinking water</li></ul>Source:<br />
  13. 13. Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />Waste estimation from PCs<br />
  14. 14. Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />Proposed Supply Chain<br />Mahindra Satyam & Tech Mahindra<br />(B2B)<br />Recycle Gold<br />(Corporate – Tanishq, Reliance Jewelers etc. <br />Private IT/ PSUs<br />Computer e-waste<br />Warehouse<br />(Mumbai, Hyderabad, Chennai, Bangalore)<br />Central Hub with Recycle facility (Pune)<br />Copper<br />Plastics <br />Glass<br />(3rd party buyers)<br />Retail Chains<br />(B2C)<br />Mobile E-waste drop-box at Includes Mom & me, Club Mahindra world, Shopping Malls etc. <br />
  15. 15. Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />Collection Process<br /><ul><li>Will operate through Hub-and-Spoke models
  16. 16. Major costs would be Logistics, cost of acquiring e-waste</li></ul>For B2B e-waste collection<br />For B2C e-waste collection<br />Enter into contracts with established companies having substantial IT infrastructure<br /><ul><li>Collection to be carried out at Point-of-Purchase of Mahindra retail outlets and other informal retailers
  17. 17. Round-trips organized to-and-from regional warehouse hubs to individual retailers after collection at the retailer’s outlet reaches a pre-specified limit</li></li></ul><li>Proposed Collection Process<br />Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />Pune<br />Recycling factory at Pune <br />(centrally located to various metros)<br />Mumbai<br />Hyderabad<br />Bangalore<br />Chennai<br />Collection process for e-waste<br />Hub and Spoke model within each city for collection<br />Weekly B2C collection <br />Fortnightly B2B collection<br />Warehouse<br />(Mumbai, Hyderabad, Chennai, Bangalore)<br />
  18. 18. Incentives For Attracting Customers<br />Households will be incentivized to deposit their electronic appliances with the specific dealers by introducing schemes such as:<br />Gift Vouchers for giving away electronic appliances<br />Rebates on new purchase<br />Businesses will be incentivized by entering into long-term contracts that will pay the businesses for their e-wastes<br />Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />
  19. 19. Processing of e-waste<br /><ul><li>Initial fixed cost for setting up a 12000 tonne capacity plant = Rs 25 Crores
  20. 20. Processing of e-waste would generate valuable metals which would be sold off in two ways:</li></ul>Selling recycled gold to Corporate houses like Tanishq, Reliance Jewellery <br />Selling metals to third party at market price<br /><ul><li>Generation of non-hazardous wastes which can be sold off to construction sites at scrap value</li></ul>Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />
  21. 21. Revenue Targets<br />B2B<br />B2C<br />Our Market: 30% of PCs used in the proposed 4 cities. Out of these, approx 1% of PCs make up our market<br />Assumptions:<br />Working PCs in India in FY 2000 was 5 million= 50 Lacs<br />PCs are changed every 10 years on an average<br />Plant Capacity used p.a.: 1350 Tonnes<br />Our Market: Approx 15% of mobile handsets used in these 4 cities. Out of that, approx 1% are sent for recycling<br />Assumption: <br />Mobile handsets replaced in every 2 years<br />Mobile handsets in FY 2007: 9.8 crores<br />Plant Capacity used per annum: 98 Tonnes<br />Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />
  22. 22. Revenue Targets<br />Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />Rate of growth of e-waste in India: 10%<br />Estimated growth rates for B2B & B2C per annum:<br />B2B: 10%<br />B2C: 15%<br />
  23. 23. Estimated Financials<br />Please refer the attached excel sheet:<br />Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />
  24. 24. Future Scope<br />Introduction<br />Opportunity<br />Operational Details<br />Financials<br />Future Scope<br />Availing government subsidies<br />Moving from solitaire to revenue sharing agreements (win-win relationship) with all third party buyers<br />Tie-up with unorganized sector for e-waste procurement<br />Bringing Mahindra group companies (e.g. Mahindra Ugine) in the value chain<br />Branding of ‘recycled’ products to attract environmental concerned consumers<br />E.g. recycled gold from Tanishq, Reliance etc.<br />
  25. 25. References<br /><br /><br /><br /><br /><br />