Nkosi Haynes

Bus 335 International Business

09/28/2023

Shakti Plastics

India’s Ministry of Environment and Climate Change placed a notional ban on single-use plastic

(SUP). This law would cause several changes in the plastic and recycling ecosystem that Shakti

Plastics industry was a part of. This change also affected ragpickers and waste collectors who

work with Shakti negatively as they are no longer able to submit SUPs which had a higher

monetary value than the alternative option, multi-layered plastic (MLP). While MLPs are needed

by recycling companies as they can be recycled and reprocessed. The general public is also

unaware of what can be recycled thus adding to the difficulty of creating a circular economy.

The problem is that Shakti is struggling to maintain their existing business model based on

new government regulations.

Alternatives

Digital Advertising

One of the major highlighted issues is the lack of awareness among the public. As Podar

claimed, awareness about safe disposal and environmental hazards was low among the entire

value chain of waste processing.” To ensure that the general public is informed Shakti can

sponsor and partner with online content creators that reach a large variety of target groups by

working with different types of content creators. Using influential voices the public can learn

about all the necessary steps that should be taken in proper segregation of waste at home and
extending the lifespan of a product through reuse, prolonged use and disposing of plastic

responsibly.

The advantages of digital advertising allow the desired information to reach a wide range

of target groups. Different content creators will be able to inform people of all age groups that

use the internet. This is a proven advertising method where brands use ethos by working with a

celebrity or expert, someone whom the audience will see as being credible or trustworthy. With

digital advertising, Shakti is able to reach a local and global audience. By tapping into foreign

media audiences Shakti could increase their company on a global scale allowing them to achieve

their goal of creating a circular economy more efficiently. This type of advertising option allows

you to be very flexible with adjusting the information given to the public in real-time. This can

be very convenient as Shakti's business model is very reliant on the world's current social and

environmental status. Such as the environmental changes the COVID pandemic caused. With

real-time updates, they can keep the entire world informed.

Disadvantages of digital marketing include extensive legal discussions for each

individual advertising contract. Creating contracts with international and local content creators

and social media platforms will be more expensive than local ones. Contract negotiations will

also take a lot of time due to cultural differences like language and economic differences.

Another con of this method could be Ad fatigue. Overexposure to digital ads can cause viewers

to become desensitized to the message being delivered. After a couple of weeks of the same

message, viewers will no longer see it as important. This would require Shakti to perform

constant updates to their ad campaign to keep the viewers engaged. This will incur large

expenses from their media team to keep the message updated. Using independent content
creators may also cause variations in the message Shakti is trying to communicate due to creative

personalization.

Raffle system

Shakti could implement a prize system to create greater incentives for ragpickers and

waste collectors to collect MLP. Using a raffle system where a person's name is entered for every

kilogram of MLP submitted will give the public reasons to exchange as much waste as possible.

Using in-demand products such as modern technology and high-value gift cards for prizes to

compete for. A new selection of prizes will be available every week to keep the public engaged

and continue to help better the environment.

The advantages of the raffle system can create a constant awareness to the public of the

types of waste they are disposing of. To have a better chance of winning the raffle people will

willingly inform themselves about how to sort their waste products. Creating this form of

challenge allows the public to constantly be engaged and learn new and more effective ways of

submitting MLP. This alternative is also a more cost-effective option than giving each individual

who exchanges MLP for money. With a four hundred dollar USD price cap for each prize pool,

Shakti will be sure to make a profit. Getting a large variety of products would incentivize people

from multiple different target groups to participate.

Disadvantages of this option include the possibility of a gradual decrease in participation

due to low odds of winning. The odds of winning a raffle are relatively low and participants may

feel discouraged if they don't win. Effectively setting up the prize system would take a large and

constant effort by Shakti to ensure that it runs smoothly. Several adjustments to the program will

be needed on a weekly basis as social and environmental factors continue to change. Shakti may
also be met with legal problems if they do not get permission from the brands they are using as

prizes.

Partnership

Shakti can partner with large production companies that distribute items on a global

scale. Companies like Amazon, Adidas, and Apple and even food instustries like kirkland that is

responsible for a wide variety of home goods have major influence on public opinion due to their

popularity and massive production rates. By partnering with them Shakti can effectively address

the regulatory policy at design, production, and packaging stages of these companies. If these

companies can integrate reusable, recyclable, and compostable materials into their products they

can then be exchanged by the consumer after use. Shakti will collect these waste products and

give the consumer points that can later be exchanged for new products with the partnered

company.

Advantages of this alternative include increased incentive to recycle on both the

consumer and supplier end. Consumers are less likely to lose interst in this method as it will be

heavily promoted everytime a new product is released. Customers will have have a chance to

claim high value and indemand products free or a discounted price. The partnered companies

will benefit because their customers will now have added reason to by products from their store

in hopes of increasing their point total to receive free items. This will increase sales of the

partnered companies thus attracting even more companies to join Shakti’s mission of creating a

circular econmony. The more this trend grows companies that are not willing to apply these

changes at their design, production and packaging levels will see a decrease in social support by
their customers resulting in decreased sales. MLP is a significantly cheaper material opinion for

companies to implement into their supply production so acquiring the materials will

notexpensive.

Disadvantages of the partnership system would be the large cost needed to remove non

recyclable materials from each companies production line and replacing with reusable materials.

Although it would be affordable to implement the new materials, companies would have to spend

a significant amount of money and time to safely dispose of their SUP product and packaging.

There may also be a delay in achieving levels of profit as this process will take some time to get

to the level of production that these large corporations would have been at previously.

Expanding Technoplast

The machinery line owned by Shakti called Technoplast can be expanded to be used by

other recycling companies to increase their productivity of project management and

maintenance. As all the recycling companies in the nation now have to adhere to the SUP

restrictions they all have to make major adjustments to their production system. Shakti will sell

their services of Technoplast to ensure a smooth transition for all the companies they work with.

Advantages of this alternative ensure that all the companies working with technoplast can

adapt to the changes in the country without incurring major cost and a minimal amout of effort to

the other recycling companies. Shakti will aslo see major profit from this venture as they could

monoplaize the recycling machinery industry in their country if they are one of the first

companies to act upon the new changes made by the government.

 Disadvantages of this alternative include the large costs it will take to expand the

business to operate on a national level. Shakti would have to expand their number of workers

exponentially in order to maintain this expansion. The new workers and the old workers will also

have to go through a new training program to be informed on how to operate on this new level

which requires large amounts of money and effort by Shakti’s management team.

Partnership+Raffel Prize System

Combining these two alternatives would optimize public awareness of waste management and

profit everyone involved from the supplier to and consumer. The partnered companies can all

sponsor the prize pool for the raffle. When customers exchange their MLP They will select

which category they want to be entered in and for every kilogram of a specific company's

products they collect it will enter their name into the raffle and earn small prizes. At the end of

every week, one person is selected at random from the draw and wins the grand prize of all the

company’s products combined

Advantage of this combined option is increased awareness of recycling and separating

waste by the general public. This added knowledge will also decrease the amount of resources

Shakti puts towards the sorting process in their factories. The large companies that partner with

Shakti will also be able to advertise the promotion to the entire world due to their levels of

popularity. Because this is a positive environmental mission it will also attract large media

attention which is a form of free advertising that will get even more people involved. The more

companies that make the change to completely eco-friendly products and packaging will bring

Shakti one step closer to achieving their goal of a circular economy.

 Disadvantages of this alternative is the include the amount of effort and money it would

take to secure a long term contract with each partnered company. Maintaining the exchange of

the waste products on a local and global level may require a facility expansion in the future for

Shakti.

Recommendations

I would suggest using the combined method of the Partnership and Raffel prize system as

it yields the best results with the least amount of company resources put into the project. With

the biggest disadvantage of this option is working out legal negotiations with partnered

companies to prevent patent lawsuits. Once all contracts are agreed companies and consumers all

across the world will be able to make use of Shakti’s system to increase the number of MLP used

in the production industry. Thus solving the supply issue after the ban of SUP. This alternative

brings awareness of the coming environmental crisis to several new innovative minds and gives

them the added incentive of high-in-demand products available to claim for free or at discount

price.

Implementation

To implement the Partnership and Rafel Prize System Shakti must first secure the

contract terms and agreements with the first selection of companies. They must agree to supply

the raffle with a minimum number of products from their company on a weekly basis. They must

also agree to replace as much of their packing material with recyclable MLP materials and turn
them over to Shakti’s facilities post-consumer use. To recover the waste after used by consumers

the raffle prize system will influence the to public to return them to the place of purchase or a

drop-off zone for online purchases. The partnered companies will perform all the major

advertising for the campaign as they have more influence and customers can refer to Shakti’s

website for more detailed information on the program.

Current event

Shakti Plasti Industries will create one of India’s largest recycling plants. With the aim to be

Indias largest recycling plant there will be an output of fifty thousand tons of recycled granules.

It will be a fully automated recycling unit deigned to decrease to decrese the amount of waste

produced in India. Shakti Industries also plans to to help brands meet compliance requirements

and boost the value chain of the rag-pickers in the sector thus deal with problem of rag-pickers

recieving insufficient pay for the work they perform. The company is continuing to explore

opportunities for growth as it strives to create a circular economy.

Business, FE. “Financialexpress.” The Financial Express, 9 Nov. 2022,

www.financialexpress.com/business/industry-lyondellbasell-signs-mou-with-shakti-plastic

-industries-to-create-indias-largest-plastic-recycling-facility-2799495/.