Department of Management, BITS Pilani

Business and Society (MBA G517)

Project report on “Waste2Value”

Submitted to
Dr. Jayashree Mahesh

Submitted by: Group 2

Submitted on: 27-11-2020

Group Members: -
Mayank Gahlot 2019H1490810P
Kshitij Shukla 2019H1490826P
Akashdeep Dwivedi 2019H1490802P
Saleheen A Fahmi 2019H1490828P
Shubham Singh 2019H1490830P

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 INDEX

Business Overview 3
Business Model 4
Business Operation 6
Methodology 9
Market Analysis 12
Competitor Analysis 14
HR Plan 15
Management Structure 16
Budget/Financial 17
Projections

Promotion and Marketing 19

Impact on Society 19
References 20

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 Business Overview
Ideation:
We have come up with an idea where we want to solve two pressing problems concerning
humanity on a very large scale, which are:
 Food waste
 Hunger
Following are some of the supporting evidences:
 According to the United Nations Development Programme, nearly 40% of the food
produced in India goes waste. For ex: nearly 21 million tonnes of wheat goes waste in
India. It is also estimated that more than 50% of all the food produced across the world
meets the same fate, and unfortunately, never reaches the needy. In fact, according to one
of the reports by the Dept. of Agriculture, approximately fifty thousand crores worth of
food produced in India is wasted every year.
 According to the FAO estimates nearly 40% of the food produced in India is lost or
wasted. Other sources, such as the Food Corporation of India, report a share of losses
ranging from 10 to 15 percent of the total production.
 List of agricultural products and their cumulative loss (%)
o Cereals: 4.65 to 5.99
o Pulses: 6.36 to 8.41
o Oil seeds: 3.08 to 9.96
o Fruits & Vegetables: 4.58 to 15.88
o Milk: 0.92
o Meat: 2.71
o Poultry meat: 6.74
 Also according to FAO, percentage of undernourished (POU) in India is 14% and that in
China is less than 2.5%.
Hence, we have our business plan to start company by the name “Waste2Value”. Our business is
driven by the concept of sustainability.
1. Vision - Zero Food Waste and Zero Hunger
2. Mission - To help Indian population meet SDG goal 2 by 2030.

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 Business Model

The above is the business model which is comprises three major parts:
 Sources of leftover food - These are places from where the leftover food would be
collected.
 Transformed Food - These are the various food items that we have planned to produce
from the food leftover.
 Selling - We would be generating revenue by selling the transformed food items. We
would be selling through our own restaurants, bakery shops and third party vendors.
The model is very viable because our cost will majorly include the initial fixed cost in the form
of setting up of collections centers, processing centers, a factory to transform food and
warehouses to store the food items.
Hence it is very soon that we will be able to hit break-even, which will make our business to start
making profit.

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 Process of Transformation

Food Users/Consumers

Non-industrial/residential Industrial/commercial
Sector Sector

Household, institution and Restaurant, snack bar, Food Manufacturer, agricultural

Dwelling vendor & night market produce, hotel, & fast food chain

Collection Center

Transformation Factory

Sent to 3rd party for Organic Transformed food

Fertilizer items

Revenue

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 Business Operation

The major complex part of our business model is operations and supply chain because unlike other
food chain or restaurants we don’t buy raw material from a fix shop or area but have to depend on
the collection of it from various sources, like, local shops, restaurants, marriage events, other
events, etc. and our vision and mission are more into reducing wastage of foods.
To handle the supply chain without food getting to the stage, where it couldn’t be converted to
quality of eatable material, our model is distributed in various parts of the country which is
independent among each other, but within each part, all cities are more or less very interconnected.
To show that here is an example of Delhi-NCR,

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The marked areas in the map are our target segment from where we will collect the leftover
foods and sell the transformed food.

Here, A represents the transforming station of Rohini, which is located at the center of the Rohini,
and B the transforming station of Ghaziabad, located at the center of Ghaziabad, and likewise for
all, and center large point is the central transforming station where it is a hub and spoke model in
this case, if extra leftover is left out in any of the city is transferred to the central transforming
station of Delhi, and if any of the collected leftovers require large processing units, massive human
resources and costly machinery are available only in the central transforming station. The same
hub and spoke model is used when the high processing required transformed food is transferred to
an area where there is huge demand. Our model is also more of the combination of an
interdependent and independent model; here we will be able to handle and cater to the requirement
of the part with the help of other nearby cities also. But this complete model which will be
implemented in parts of India as well. They all will be independent of each other.
The collection of leftover food within the city is also the primary task, and it will be overly
complicated and costly, if not done rightly, so we have produced a model for collection of leftovers
within the city.

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The small circle with A in it represent the transforming station of Rohni and the giant circle on the
right represent the complete Rohini area, we have dialogue divided the city, and the yellow
bidirectional line represents the main transportation line on which there will be various dumping
station on it, on which the leftovers will be collected from the city, the collection from the city is
represented via green bidirectional lines, our firm will tie up with various NGO, do the volunteer
work and some company workers combined will help in dumping the food leftovers from various
sources to the dumping station on yellow strips, then from the dumping station( on the yellow
lines) to Transforming station( A, B, C etc.) will be done by the vehicle of the firm, which will
move back and forth on that line. This way, the efficiency will increase the cost will also reduce.

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 Methodology

We have gone through many research papers and surveyed to get an idea about their perception
and eagerness to accept the food items prepared afterward.
Survey Method
We asked them about the locality in which they reside, the number of family members, average
food wastage per household, and leftover food sources. Based on their feedback, we asked them
to tell whether they will consume and try it in the future. This survey was circulated through google
forms.

Data collection technique Primary as well as secondary

Target population 100
Sample size 60
Survey procedure Google Form
Response received 62

Information asked to reveal using survey through google form

Information Parameters
Geographic information o Metro
o Urban
o Rural

Family members o 2-4

o 4-6
o 6+

Average food wastage per home o Less than 1 kg.

o 1-5 kg.
o 5-10 kg.
o More than 10 kg
Sources of leftover foods o Agri. Waste
o Restaurants
o Households
o Marriage/Function events
o College Mess

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 Would you consume product from left over o Yes
foods o No
o May be

Kind of product you would like to have from o Sweets

left over foods o Chocolates
o Rolls and wraps
o Soups
Reason for not consuming product from left o Unhygienic
over foods o Unhealthy
o Taste
o Perceptual bias

Data Interpretation
The study was intended to solve the world hunger problem with creativity. World’s 9 percent
population go to sleep daily without food in their stomach. We have here collected the location of
the respondent to know about their perception towards this initiative.

We have asked them about the average wastage per household in kilograms to know about the
wastage level happening in a family and found the following data.

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When we asked the respondent to give his/her preference about whether they would be willing to
consume the items that will be reprocessed into a newer food item, around 45% are willing to do
that, and 36% may try it.

Lastly, we asked them about their preference and food items being prepared by the leftover foods.
Here we got a little diverse result as some preferred packaged while some rolls and wraps.

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 Market Analysis

Today’s Gen Zs are inquisitive about the story behind their snacks. They would like to be aware
of the authenticity of the historical benefits behind their food. Consumers are embracing old-
fashioned snacks and adopting ancient food practices. With nostalgia playing a significant factor
in food choice, millennials and Gen-Zs look for creative options to share with their families. Today,
brands look to bring back the classic meals through a creative rebranding to appeal to its new-age
consumers.

Segmentation
The young generation, belonging to the age group of 21 to 40, educated and empathetic people.

Targeting
We have considered India as our market, and based on our segmentation, we have calculated the
target market. We have only targeted middle and lower-income group people as of now. Following
is the list of assumptions we made while calculating the size of the market.
 Urban population equals to 40% of total
 Middle and lower-income group equals to 70% of the total population, which is 1.3 Billion.
 Youth belonging to the age group equals 20/70, where 70 is the average life expectancy in
India.
 80 % of middle and lower-income people want to try the product

Estimated Target market = 83 Million (40%*1300*(20/70)*70%*80%)

Positioning
The concern is about the world’s 9% population, which is sleeping without food because of food
shortage or solving hunger problem. We would transform and reprocess food items from
nonperishable items maintaining all hygiene and health standards.

Market Need
We have conducted market research and found some interesting facts
 More than 44% of our respondent are willing to buy
 Most of them preferred the packaged reprocessed food items like Kellogg’s do.
 The majority agreed to use this as a snack and breakfast
 Our focus will be to serve the impoverished class either through food or revenue generated

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Competition:
There are no direct competitors in the market barring some NGO, collecting and distributing food
free.

Barriers to entry:
 Regulation and License
 Healthy and hygienic food standard needs expertise

Value Proposition:
 Affordable food.
 Range of food items.
 Zero food Waste.
 Better quality of life for undernourished.
 Reduce pollution and improve cleanliness.

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 Competitor Analysis

India does not have any major player in food transformation segment, which will be beneficial
for us to establish the company. For the product we will have competitors like Mcdonalds,
Haldirams and local vendors.

Quick Serving Restaurants Haldirams/Bikanerwala Local Vendors

Brand Value High High Low
Channels
they are
selling
through In Store, Online In store, Online Store and Online
Locations Multiple Locations Multiple Locations Multiple Vendors
Cost Moderate Moderate Cheap - Moderate
Why
Customers
Prefer them Quality, Taste Quality, Taste Taste, Convenience
Supply Chain Professionally Managed Professionally Managed Locally Handled
Why
Customers Unhealthy,
are no Buying Unhealthy Unhealthy Unhygienic
Sales and
Marketing Social Media, TV, Media Social Media, TV, Media Word of mouth
Revenue $1 Billion+ $1 Billion + Less Than 10 Lakh
Discount and
Offers Regular Online and In Store Festive Offers No Offers
Technology
Used ERP, Customer Research ERP, Customer Research None

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 HR Plan

Human Resource Needs

 The representatives would be required to collect the food from specified locations in the
city. The task would also involve the volunteers who are ready to work for the
organization and give the food at the respective collection centers.
 There would be staff required at the collection center for separation of food items
according to the requirements
 Setting up supply chain between collection centers and transformation centers will also
require work force to handle the tasks.
 Professionally trained chefs would be required to carry out the process of food
transformation hygienically.

Guidelines and Company Policy

 Employee guidelines on what all is expected from them and their rights and company’s
legal obligations
 Service level agreements with the vendors and suppliers
 Multi Point Check to maintain hygiene the utmost priority when handling food

Develop Training
 Develop In-house training program for the employs specific to their roles
 Develop general guidelines and company policy training for all the employees
 Develop Ethics training program which all employee needs to attend annually

Compensation and Appraisal Plan

 Get research data on industry standards of pay scale for employee in industry
 Develop and offer compensation packages to employees.
 Clear guidelines and measures for the appraisal for future growth of employees needs to
be laid down.

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 Management Structure

Mayank Gahlot, Report to the board members,

CEO help achieve company's goals
Waste2Value

S.A Fahmi, Responsible for sales, marketing,

product development, marketing
Marketing Head research

Kshitij Shukla, Control Report and strategise

Finance Head finances of the company

Akashdeep Dwivedi, Responsible for all aspects of

human resource mangement and
Head HR industrial relations

Shubham Singh, Strategise daily operations and

ensure smooth running
Head Operations operations

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 Budget/Financial projections

 Revenue in the snack food segment amounts to over $5000 million in 2019 and the
market is expected to grow annually by 7.5% (CAGR 2019-2023).
 We are targeting a market of 83 million for our business as of now.
 Our model will incur only initial fixed cost in the form of setting up collection centers,
processing centers, a factory to transform food and warehouses to store the items.
 The business looks very viable, as the food industry has never seen slump even in times
such as covid-19.
 To raise fund, initial phase will include bootstrapping followed by investment by VC.
Taking Haldiram as the benchmark company, we would be coming up with our financial
projections, keeping the above points in mind.
Last year Haldiram crossed 100 cr sales mark in India. We are targeting a sales of only 50 Lakh
per year for the initial year and then we are very optimistic that our sales will also grow
comparable to haldiram.
Assumptions:
 Revenue in 2021 = 10 Lakh (will increase by 7.5% annually)
 COGS in 2021 = 10 Lakh (will increase by 2 % annually)
 Total Expense = 10 Lakh (will increase by 2 % annually)
 Tax rate = 30%
Given the above assumptions, we would be able to hit break even by 2035.

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 Financial Projections
40.00
30.00
Amt in Lakh

20.00
10.00
0.00
2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
-10.00
-20.00
Years

Revenue COGS Gross Profit

Total Expenses Net Income Before Tax Income Tax
Net Income After Tax

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 Promotion and Marketing
The idea of promotion for Waste2Value would be different. Some of the steps that can be taken
are

 Using certification/approval like FSSAI to ensure the hygienic way of procurement and
preparation.
 An app/website to let customers understand, the crisis of food wastage and how they can
be of help
 The food would be positioned as Value for Money, Hygienic and tasty meals prepared
from leftover material.
 Donating a portion of proceedings in slums and needy to garner social media attention for
the cause.
 Influencer marketing can also be used to promote the brand at a lower cost.
 Targeting the youth population as they are less prejudiced and more aware about the food
crisis.

Impact on Society/contribution

 Food Security for all

 Contributing towards SDG 2 : Zero Hunger
 Ensure food for all.
 Eliminate food waste.
 Ensure food security for all.
 Ensure environmental sustainability
 Nutrition for all
 Contributing towards circular Economy

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 References

 https://thecsrjournal.in/food-wastage-in-india-a-serious-concern/
 https://www.cleanindiajournal.com/food-wastage-crisis-in-india/
 https://economictimes.indiatimes.com/news/economy/policy/giving-cheaper-food-to-reducing-
wastage-india-on-path-towards-achieving-sdgs-govt/articleshow/79371253.cms
 https://timesofindia.indiatimes.com/business/india-business/agricultural-wastage-is-indias-
problem-no-1-here-is-why/articleshow/70974705.cms
 http://naasindia.org/documents/Saving%20the%20Harvest.pdf
 http://www.fao.org/3/ca6030en/ca6030en.pdf
 https://www.downtoearth.org.in/blog/food/reducing-food-waste-vital-for-india-s-food-security-
57345
 http://web.mit.edu/colab/pdf/papers/Reducing_Food_Waste_India.pdf
 http://www.fao.org/save-food/projects/study-fl-india/en/
 http://www.fao.org/platform-food-loss-waste/flw-data/en/
 https://en.reset.org/knowledge/global-food-waste-and-its-environmental-impact-09122018
 http://www.fao.org/hunger/en/
 http://www.fao.org/sustainable-development-goals/indicators/211/en/
 http://www.fao.org/3/ca9692en/online/ca9692en.html

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