B-Plan

Industrial Residual
Waste Management

Submitted by: OP-2

Simranjeet Singh-50802062
Sachin Modgil-50702516
Soutik Ghosh-50702517
Sumeet Malhotra-50702518
Rajan Dhingra-50702514
Surjeet Kaur-50702519
Group Leader---- Vishal Singh Patyal-50702520
 Contents
 Executive Summary

 Business Description

 Operational Plan

 Marketing Strategy

 Financial Analysis

 Final Words
 Executive Summary
• Birex is an enterprise which brings to the
market the core business of industrial residues
management in the form of a business to
business approach
• Birex will pursue a distinctive strategy in this
market by providing a total solution for our
clients so that, from start to finish, they will no
longer have to manage their industrial
residues.
Business Description
 About Birex
• Birex is a service company designed to offer
waste management services to large and
medium-sized companies looking for
complete solutions to their waste problems.
• Birex will be located in the city of Mogi das
Cruzes, which is 50 km northeast of Sao Paulo.
Birex will initially service the city of Sao Paulo
and its neighborhoods, an area that includes
more than 30% of the NCR GDP.
 Why this Business??
• Improve the environmental quality and the economic
cost of managing waste
• Environment sustainable waste management systems
must reduce as much as possible the environmental
impacts of waste disposal, including energy
consumption, pollution of land, air and water and loss
of amenity.
• Economically sustainable waste management systems
must operate at an acceptable cost.
• There will always be the need to balance the
environmental quality of a waste management system
against its economic cost.
 Opportunity Not To Be Missed
• Waste is generally something that companies need to
get rid of, preferably at the lowest possible cost.
• Modern society is urging for environment control, and
this pressure will only increase.
• Thus, the services related to waste management will
have a high demand in order to allow these companies
to dispose of their residues safely.
• Waste management is definitely not our client's core
business nor its core competence.
• In addition, waste management can become quite a
complex subject depending on the type and amount of
waste generated, thus demanding specialized attention.
 Volume, of Residues [ton/yearl
COMPANIES

East
India
PMD(Plastic (Auto
Saber paper Esteem
s ) Micro
Item Ltd TVS Indus
Mould& Manuf turners
tries
dye acturi
ng
Co.
(P)

Plastics 50 20 41 ------ 47 9

Metals 29 ------ 19 126 16 50

Paper 15 65 2 2 ---- ----

Glass 5 ---- ------ 29 ------ ------

Wood ----- 200 8 10 ------ -----

Cloth 3 15 ------ ------ ------ -----

 Products and services
1. Waste management
2. Waste collecting
3. Waste disposal
4. Technical consulting
Operational Plan
 Birex Concept

Birex
 Operational Plan
• Complete solution for all kinds of waste, giving them the right
destination in a safe way.

•Collection & Transport

Will be made with trucks.

•Warehousing & preparation

After collection, the waste goes to a special area to
be sorted .
Our premises includes trucks, lift trucks, tractors,
pressing machines, cranes, conveyors, buckets
Operational Plan (Cont..)

• Distribution
Being sorted and bundled, the waste goes to the right place
where it will receive the correct treatment.

• Structure
The complete training, including the knowledge of legal
aspects and innovation developments
Marketing Strategies
 Analysis
• Approximately 3000 Industries in BBN belt
• Generating 3 million tons of solid residue/
year
• 0.1 million ton of dangerous residue
• 0.3 million ton of inert residue
• 2.6 million tons of non-dangerous & no-stable
residue
 Opportunity
• Potential of Our services in BBN belt, Mohali,
Derabassi, Chandigarh
• Economic & industrial activities growing & so
industrial residues
 Relevant Targets
• High Visibility, Concerned about their image
• High volume of residues in production Process
• Global Market Presence
• Aim of having ISO 14000 Status in Coming
years
 Segmentation
• By Industry Type
• Like-Metallurgy, Paper, Chemical, Pharma,
Cosmetics, FMCG (Like P&G), Textile
• By type of residues Generated (cycle- able,
recyclable)
• This Approach belongs-TOTAL SOLUTION
Strategy
 Level of Competition
• No Company have proposal to manage all
waste released by company
• Competitors- Those collect specific types of
scrap
• Current large companies collect domestic
waste & non recyclable materials
• Use waste to landfills or to incinerators
 Why we will be able to sustain?
• Creation & establishment of strong brand
name-First company for TOTAL SOLUTION
• Scale & Scope of economies-Waste Treatment
solution once developed for clients can be
used for other companies
• Forging of strong partnerships with waste
processors
 Risks
• Industry: We will be a Pioneer in a nascent
Industry. However, Industry has great
Potential. Risk: Medium
• Competitive Position: We will have good
position in fragmented industry. Risk: Low
• Demand Assumptions: Sales Forecasts are
difficult, interest high, Sales Estimates are
believed to be conservative. Risk: Medium
 Continue…
• Technological & Operational Obsolescence: New
Operational & Technological Processes will likely
to reduce the quantity of waste generated
• Not all companies will be willing to pay for
change required
• For some industries difficult & costly to change
• We believe – there will be an industrial waste
demand
 Marketing Strategy
• Total Solution: solution ranges from waste
collection to final destination
• Recycling, Landfilling, Incinerating or storing
• Companies will be able to concentrate on their
core business, leaving solution of their waste
problem to us
• In Some Cases we may even be able to absorb our
clients' personnel & equipment when necessary
• This helps to develop a strong relationship &
understand their needs & provide them high
quality services
 Continue…
• Ethics: Market is looking for but not finding on
they can trust
• Major Concern of our Clients: Responsibility
for the final destination of the residue remains
with waste generator & can not be transferred
to waste processors
 ISO 14000
• We believe that during ensuing years BBN
Industries will be working to obtain ISO 14000
Certificates for international Competitiveness
• We Offer services in compliance with the
requirement of ISO 14000
 Sales Strategy
• Unique in our Creative & flexible approach in
order to solve our clients’ waste problem
• Identification of residue type
• Process begin with evaluation meeting with
future client
• Our representative will analyze the scrap
output & recommend most efficient collection
system
 Contd…
• Pick will be scheduled on as needed basis or on a
regular schedule depending upon situation
• Clients’ needs will be met by a variety of
equipment, including special trucks
• After initial consultation a comprehensive &
customized proposal will be submitted to
customer
• The result will be fit into an organization’s day to
day & long term planning
 Pricing Strategy Existing

150% P=100% Final

Clients
Destination

Middleman
 Pricing Strategy Birex

125% P=100%
Final
Clients
Birex Destination

Middleman
Guarantee a better price because?
• Inefficient agents B/W waste generators &
final processors
• Waste often is not properly selected
• Long term relationship with waste processors
thus will be able to obtain better pricing
 Contd…
• Through this pricing structure both clients &
Birex will be benefited
• Birex will be able to realize healthy profits
even though we maintain low margin
because:
1)Lean cost structure
2) Dispose of waste in Large quantities, to
achieve economies of scale
 Contd….
• Waste Management: supervisors' work
charges Rs 20000 per month, who will
instruct & coordinate collection of residues
• Technical Consulting: Consulting Services will
start in 2nd year & will be charged on an hourly
basis(Rs 4000 per hour)
 Advertisement, Promotion
• Participation in seminars regarding waste
management
• Write technical articles for specialized
magazines
• We believe endorsements made by our
customers will be profitable way of pushing
our message
• Set up of Internet Home Page describing our
services & successful experiences
 Partnerships
• Local Supervisor will be of key importance of
strong relationship with client
• Key partner will be waste transporter &
processors
• Actual waste disposal partner e.g through an
incinerator or a landfill
• With Long term Relation with these partners
help to improve our operations
 Placement Analysis
• Birex will be strategically located in BADDI
where our target costumers are located
• Transportation cost components is major for
our business
• Center location will minimize fuel expenses &
improve truck productivity
 Budget
• Our budget for Sales & marketing is 3% of
revenue
• This will cover expenses like travel, events &
advertisement
 Result from Research
• Declared quantities are similar to those
indicated…..
• Response was positive, particular in reference
to TOTAL SOLUTION
• They want ethical attitude towards
Management of residues
• Our venture help them to obtain ISO 14000
Certification
Financial Plan
 Start up Expenses
Fixed Costs (One Time Investment)
Items Cost (in Rs)
Office setup 3,00,000
Vehicle Cost (M&M) 2,50,000

Printer (3 in 1) 5,000
Internet & Telephone 3,000
Accounting , Legal & Registration 50,000
Website Development 2,000
Newspaper/Radio 15,000
Marketing Expenses 20,000
Equipment's & Tools 5,000
Miscellaneous 10,000

Total 6,60,000
 Operating Expenses
First year Budget Cost (Rs)/Month
Fixed cost
Salaries (3 labour+1 Supervisor) 20,000
Local Advertising 1000
Internet & Telephone 3000
Equipment (Safety) 1000
Administrative expenses 3000
Total 34000
Variable Cost
Mobile Expenses 2000
Repairs & Running (M&M pick up) 6000
Vehicle permit expenses 3000
(Raw material) 388200
Total 3,98200

Total 4,59200
 Funding

 Cash in Hand
Founder will invest
8,00,000

 Friends/Relatives

3,00,000
Revenue Model

Estimated
Profit
Financial Projections

Revenue Grows @ 30% /year

Break Even Analysis
 Final Words
 BIREX will always provide a responsible solution according to
the law, controlling agencies standards and in accordance with
ISO 14000

 Undoubtedly, the approach of offering a TOTAL SOLUTION® for

the clients who will no longer have to manage their industrial
residues at very competitive prices is a very positive point

 The company will add value to its customers, partner

companies, society, government and the environment

 We are sure that BIREX is a very attractive business that will

bring excellent results in the following years
Thank You