Project of Business, Entrepreneurship and Management on developing an innovative business idea Presented by students of B.Com(H) I year section 4 Hans Raj College Faculty- Mrs. Meghna Malhotra Modern Kabadiwalas & Recyclers Group- 4 Executive Summary • The basic idea that we have is to replace kabadiwalas with a more sophisticated and organized method of scrap waste collection and recycling • The business model involves procuring waste from various organizations, businesses as well as households and recycling it in a sustainable manner. • The main categories of waste that will be targeted are: 1. Food Waste 2. Paper Waste 3. Metal and Glass 4. E-waste. FEASIBILITY SURVEY • In order to judge the feasibility of our idea, we carried out a short survey in the localities that we wanted to target initially. • The questions asked varied from their views about their current kabadiwalas and their possible reaction to a new form of kabadiwala in the market. Q1. How do you deal with scrap waste at present? 14 12 10 8 6 4 2 0 Sell it to a Kabadiwala Throw it away Keep it till it becomes a nuisance Q2.Are you happy with your current kabadiwala? 18 16 14 12 10 8 6 4 2 0 Yes No Q3. What are the problems faced by you while dealing with kabadiwalas? 18 16 14 12 10 8 6 4 2 0 Rude Behaviour Haggles Unnecceasirily Improper weighing system Q4. How often do you dispose off your scrap waste? 20 18 16 14 12 10 8 6 4 2 0 Monthly Quarterly Q5. Would you sell your scrap waste to a firm which guarantees to recycle it? 20 18 16 14 12 10 8 6 4 2 0 Yes No Q6.Would you be okay if this company buys waste at slightly lower rates? 18 16 14 12 10 8 6 4 2 0 Yes No Analysis Of Survey • It is very clear from the survey that people are not happy with their current kabadiwalas due to many reasons. • Also, people are open to selling their scrap waste to a new player. • This survey gives us confidence that our venture can prove to be successful and may solve the needs of our customers. Services Offered • Our company will be offering the following services:a. Collection and recycling of scrap waste like metals, newspapers etc from households. b. Collection of food waste from restaurants and eateries and recycling it through vermicomposting. c. Collection of paper from offices, schools for the purpose of recycling. 1.Collection and Recycling from Households • We will collect scrap waste like newspapers, metal and glass from households. • Waste would be collected by 4 auto-rickshaws which will be hired by us. • This waste would be brought back to our warehouse in Okhla. • The paper recycling plant will be at this location only. PRICE LIST MATERIAL COST (Rs.) Newspapers 8 Books and copies 6.5 Iron 20 Plastic 12 Tin 18 Copper 300 Brass 200 Aluminium 105 Glass 2 Beer bottles 1.5 Carton 6 Steel 35 Request PICK-UP Form • • • • • • • Name: Phone: E-mail: Address: Waste Type: Approximate Weight: Time of pick-up (3 options): Terms and Conditions 1. Your details entered in the "REQUEST PICK-UP" form must be correct & minimum weight that will be picked up is 15 kg . 2. Requested pick-up will be cancelled in case the details mentioned are wrong & all future request will be blocked permanently . 3. All the details mentioned by you are highly confidential & will not ever be shared to anyone except the members of our organization . 4. If the waste scrap is in bad condition , or of no use , or is theft material , we are not going to buy that stuff . 5. Once the payment is made after sealing the waste scrap material , it wont be replaced or exchanged . 6. The organization is not responsible for any material that you have placed in the scrap lot & have lost it 7. The weight machines used by our employees are fraudless & you can test our machines . 8. You are requested to check identity card of the executive at your doorstep to avoid any misuse of name of our organization. 9. Our organization has rights to rejects any request , any time , depending upon situation . Cost Analysis of Paper Recycling Machine = Rs. 1,00,000[FIXED COST] Collection of paper at cost of Rs. 8/kg Salaries: Four auto drivers @ Rs. 500/day Four workers at recycling [email protected] Rs. 500/day Cost of gas= Rs. 200/day for each auto Therefore, Rs. 800/day MONTHLY COSTS( 2500 kg) Salaries: 500x4x25x2=Rs. 1,00,000 Gas= Rs. 800x25= Rs. 20,000 Paper= 100kg/day at Rs. 8/kg= Rs. 60,000 Dyes= Rs. 1000 TOTAL COST= Rs. 2,11,000 Thus, we will be able to produce 25,000 rolls of paper as 1kg of paper is converted into 10 rolls of paper. SELLING OF RECYCLED PAPER After, the paper has been recycled it will be of good quality and will be classified as recycled handmade paper . This paper will be sold through: 1. Stationery Stores 2. Design Stores 3. Dilli Haat and 4. School Stores Handmade paper will be sold at Rs. 40/roll which is lesser than market price. This would mean that the monthly revenue will be Rs. 10,00,000. PROFIT= 10,00,000- 2,11,000= Rs. 7,89,000 2.Food Waste and Vermicomposting Collection of food waste from restaurants Preparation of vermicomposting pits Sale of vermicompost produced to farmers • Our business will look to enter into contracts with restaurants to collect their daily food waste on a nightly basis. • For this purpose, we will have two autorickshaws for the purpose of transportation of waste to the site of vermicomposting. • Vermicomposting does not require much supervision and hence only one person to manage the pits will be enough. • The vermicompost generated would be the source of income for the company. Benefits • Restaurants will get a viable way of disposing off their food waste at the end of the day. • Vermicompost is a very good supplement for crops like: a) Field Crops b) Fruits c) Vegetables Quantity of raw materials Raw materials required in a pit or tank measuring 1.5 m × 1 m × 1 m areas follows: I. Dry organic wastes 50 kg II. Dung slurry 15 kg III. Rock phosphate 2 kg IV. Earthworms 500–700(there are 2230 approx. worms in 1 kg) V. Water 5 L every three days PER TANK COST MATERIAL QUANTITY COST Dry organic waste 27 50 kg Cow dung slurry 20kg 11 Rock phosphate 2kg 16.24 Earthworms 250g 42.5 Soil 30kg 12.24 Water - - TOTAL 100kg 109.08 • Cost of 1 tank which will generate about 100 kg of vermicompost: a. b. c. d. 1 kg cost= Rs. 1.09 Selling Price= Rs. 10/kg Therefore, profit per kg= Rs. 8.91 And profit per tank of vermicomposting= Rs.891 MARKET SEGMENTATION • Initially, for the pickup of scrap waste we will be targeting localities in South Delhi. • As the results of our survey show, residents of localities like Greater Kailash, Jor Bagh, Hauz Khas, Vasant Kunj are willing to sell their scrap waste to a new player in the market. • As we can see these localities are based in South Delhi as residents there are more concerned about the environment and are willing to try new things. •For the purpose of food waste, we will target restaurants in Hauz Khas Village as these restaurants have been embroiled in waste management controversy recently. •These restaurants will be willing to sell their food waste to us as they have faced the threat of being shut down as they have been disposing off their waste in the nearby lake. •For collection of paper waste we will enter into contracts with offices for the collection of newspapers and other waste paper. •Also, we will enter into contracts with schools to collect the waste examination sheets as well as other waste paper. Karma Recycling Company • Process followed: E- waste collected from households and offices will be sold to this company. They will: Send it to government licensed recyclers , or proprietary process. Resale for reuse. Extract materials automatically and break it into raw materials. Promote Zero pollution and recovery of 95 %raw materials . PROMOTION • Advertisement on Facebook and other social networking sites. • Pamphlets in the newspapers in the localities that we are targeting. • Educating the people about environment and promoting. ORGANISATIONAL STRUCTURE Directors Executive Manager Recycling and Procurement Manager Auto-Drivers and Plant Workers FUNDING REQUIREMENTS ITEM • Paper recycling machine • Autorickshaw(on hire) • Warehouse(on hire) QUANTITY COST •1 • Rs. 1,00,000 •4 • Rs. 50,000 per month •1 • Rs. 1,00,00 per month SALARIES: Rs. 1, 00,000 per month Gas: Rs. 20,000 per month Website Developing: Rs.1, 00,000 Requirement for purchasing scrap: Rs. 1,00,000 per month. Cost of vermicomposting pits(600)= Rs. 65,000 per month Therefore, total monthly requirement is Rs. 4,35,000( apart from machine and website). Fixed= Rs. 2,00,000 Hence, yearly requirement is Rs. 54,20,000 BREAK-EVEN ANALYSIS Estimated monthly profit: Rs.7,89,000+ Rs. 5,34,600= Rs. 13,23,600 Estimated Monthly Cost= Rs. 4,50,000 Monthly Gross Profit (taking into account some unforeseen expenses)=Rs. 8,00,000 Therefore, initial investment in the business will be recovered in 1 year and from that time on the earnings of the business will become its profits. FUNDING PROPOSAL We are looking for initial funds to start the business. These funds as mentioned above are around Rs. 60,00,000.