A perspective on Business Development

A t a k e o n Te x ti l e i n d u s t r y -
Circular Economy

Prepared by:
Abhinav Kumar
 Contents

1. Business Overview
• Objectives & Proposal
• Market analysis
• Targets Customers and Clients
• Competition
• Marketing
• B2B Demographic
2. Opportunity / Value Proposition
3. Services Offered
• Intervention
• Implementation
• Strategic Partners
4. SWOT Analysis
5. Revenue Streams
6. Limitations
 Objectives & Proposals

• To create new business opportunities for the firm in the domain of sustainability, particularly related with Circular
economy.
• To assist the corporates and other stakeholders for creating waste-free production, and reuse of end wastages, that aims to reduce
waste and pollution.
• To create effective system for Brand/retailers to strategize their implementation of minimizing wastages.
 Market analysis

Market Characteristics and Trends

• ^More than 15 million tons of used textile waste is generated each year

• `At present India has $4 billion** used-clothing trade. 

• Major place which has recycling clothes into yarn and blankets are in Panipat, but are slowly loosing to China.

• Between 2000 and 2015, global clothing production doubled , while the average number of times that a garment was worn before
disposal declined by 36 percent.
• “Fast fashion" is thus creating a bleak scenario: The tide of second hand clothes keeps growing even as the markets to reuse them are
disappearing 
• Apparel industry accounts for 10 percent of global carbon emissions.
• India also import used clothes from US, Canada, South Korea, Germany, UAE which implies Indi can be a leader in this growing Sector.

1. Economic Times, June 15, 2018

2. All project
 B2B Demographic
Target market and Potential clients

• Textile Factory Major Areas Major Retailers

• Garments Industries • New Delhi • Aditya Birla
Area • Raymonds
• Clothing/Textile brands
• Surat • Levis
• Waste Collectors/ Segregators • Tirupur • Or emerging brands
• Wholesalers/Retailors • Ludhiana Multi retail outlet***
• Recycling Units/ Start-ups • Bangalore • Myntra, Jabong***
• Overseas clients • Chennai • Pantaloons
• Shoppers stop
• Big bazar

Market Size and Revenue Potential Competition

Estimated- 6000 Cr Market**
• Wazir Advisors
Divided as: Blanket
Reusable Cotton garments • Go green Textiles India
Wipes or other household or
Industrial uses.

**Economic Times.
 Scenarios

The intervene is targeted to bring real world scenario, from Ideal World
Scenario
i.e.
COST OF COLLECTING AND PROCESSING WASTE < VALUE OF RESOURCE,

to Real World Scenario

COST OF COLLECTING AND PROCESSING WASTE < VALUE OF RESOURCE+

X (PROFIT)
 Intervention & Implementation, Operation Strategies- I

• Model 1-
When the product is to be treated as end product. Recovery & Recycling/Product Life
Extension
• Model 2-
When the product is still in use/ Sharing Platform/ Product as a Service
• Model 3-
When products have very short duration of use, Sanitary Napkins, Cotton Napkins.
 Intervention & Implementation, Operation Strategies- II

The intervention can be made in three (or four) ways:

• Process Analysis & Re engineering(R&D)- Technical consulting/Management Consulting
• Product design, reverse logistics, business model innovation and cross-sector collaboration,
Product lifecycle
• Extended producer responsibility
• Financial Modelling for new Business Models- Core Financial Services
• Lending Services
• Green Bonds, Impact investing
• Risk Guarantee schemes Guarantee Fund for Energy Efficiency (PRGFEE) to provide 50% guarantee
and Partial Risk Sharing Facility (PRSF) of SIDBI to provide 75% guarantee
 Intervention & Implementation, Operation Strategies- I

• Impact assessment (Environmental, Social, and Economical) - Sustainability and Infrastructure Consulting.
• Ensuring new Circular economy are more sustainable than old processes
• Accounting for Emissions, Energy use, Water use or any material used in the making of the product.
• Designing the processes
• Socioeconomic impact assessment- On economy, culture, employment, labour markets and Migration.
• Policy analysis- Monitoring and evaluation, Customer connections
• e.g.- European Recycling Platform passed an legislative acts to set recycling targets and enhancing
competition.
• Policies related to design stage
• Policies related to consumption -Mechanisms of improved labelling and supporting informed decision making
by consumers
• Policies related to waste management and recycling (end of life)
 Case Study

• H&M business ‘waste’ to ‘resource’ model evolution

• Re-wear – clothing that can be worn again will be sold second-hand.
• Reuse – old clothes and textiles will be turned into other products, such as cleaning cloths.
• Recycle – everything else is turned into textile fibres, and used for things like insulation.
• How to create these environment,
• Reselling and trading-in
• Donating
• Recycling
• Investment
• H&M is investing in technology to reuse and recycle fabrics even more.
# There are also firms which have evolved in Fashion on the basis of Model 2, where
they rent the Clothes item for particular time period.
 SWOT Analysis
• Responsible Manufacturing • The more separation of
• Optimizing Energy use
• Reducing Carbon Foot printing source streams are
• Water Management required, there higher the
• Resource Intensity effort required by
• Low cost for the product or services residents.
• Biodiversity • Customers education
• Development of new Economical model therefore • Minute monitoring
more jobs and skills in the market
• Extra cost incurred in
Strength Weakness R&D

Opportun- • Inefficient Collection schemes

• Fast Growing market Threats • Can work effectively only it is well
• ties
Conscious Customer ready to buy and collaborate accepted by People
• Untapped market • Can sometime have higher cost of
• Huge chances of Brands coming up to fulfil their Production with no Profitability
sustainability criteria • Job loss in other sectors
• Extra cost incurred in R&D
• Risk of Failure
 Expected cash flow

• Investment Incurred
• Expected Revenue
• Net profit

• Manpower required
• Other Misc.
Thank you!!