REGENETA

(Business Model on Plastic Waste Management)

Submitted By:

Vishant Suri

Team Members:

Vishant Suri
Pranjul Pandey
Sangram Biswal
Shalini Daniel

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 Contents
Objective.................................................................................... 4
Mission and Vision ................................................................... 4
Company overview .................................................................. 5
Product ...................................................................................... 5
Benefits of Recycling ............................................................... 6
Possible Obstacles .................................................................. 7
Industry Analysis ..................................................................... 8
Turnover of Recycling Industries (in Crores) ...................... 9
Structure of the Plastics ......................................................... 9
Market Analysis ..................................................................... 10
Customer Analysis ................................................................ 11
Competitor analysis .............................................................. 11
Marketing Strategy ................................................................ 12
Product/Service Strategy ..................................................... 12
Pricing Strategy ..................................................................... 13
Distribution Strategy ............................................................. 14
Advertising and Promotional Strategy ............................... 14
Sales Strategy ........................................................................ 14
Development .......................................................................... 15
Development Strategy........................................................... 16

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Management ........................................................................... 16
Operations .............................................................................. 17
Stages of Recycling and Production ................................... 17
Scope of Operations .............................................................. 18
Supply Chain ........................................................................... 18

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 REGENETA
Regenerate the Plastics

Objective

• To set up a plastic recycling plant and to enable proper use of

plastic.
• To create awareness about plastic- uses and harms.
• To earn profits by selling recycled plastics.
• Once we capture the market, we will open branches in other areas
and towns.

Mission and Vision

• Strive to provide the excellent plastic solution to the customers at

competitive prices.
• Continually expand our range of products.
• Poised to service both large and small customers.

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Company overview

• We will create a plant (actual facilities to be shared with the

recycling unit) to manufacture extruded
• plastic flakes (purified plastic). The extruded plastic is then
molded in the various products.
• We will produce two types of replay plastics
• 'D PVC (Polyvinyl chloride)
• PET (Polyethyleneterephthylene)

Product

• The products we are producing are Cleaned and recycled plastic

flakes of PET and bottles,
• recovered from post-consumer beverage bottles. (This PET will
work as raw material for packaging to various firms,not for the
end user)
• Household finished plastic goods. We will manufacture plastic
tubes of various diameters, plastic kitchenware. (For the end user)
• PET flake will be sold to thermo formers (those who mold plastic
sheets into usable products) primarily to be used to produce high-

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 visibility packaging. And also, to the beverage companies for
packaging.

Benefits of Recycling

 Reduce Material Consumption

One Of the largest benefits of recycling is the ability to preserve more

virgin materials for later use. While some materials have a limited
number of times that they can be recycled, many others can
theoretically be recycled an infinite number of times. This is true of
most metals, par titularly aluminum.

 Reduce Energy Consumption

Often the energy required to recycle materials is far less than the
energy required to make a product out of new materials. Recycled
aluminum, for example, saves 95 percent of the amount of energy it
takes to create it from virgin materials. Other materials save amounts
that are more modest. Recycled glass, for example, only saves about
40 percent of the initial energy investment.

 Reduce the Size of Landfills

Landfill size can be drastically reduced with an aggressive recycling

program. Reducing landfill size not only leaves more land for other

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uses, but also minimizes the amount or energy required to remove and
eventually relocate trash. When considering the size of landfills, also
take into account the wasted area around the landfill. Land adjacent to
landfills is Often only for industrial sites. Air pollution makes it even
less likely that nearby land can be used for other purposes.

 Reduce Pollution

Waste often creates water pollution by leaching chemicals into the soil.
While some of these chemicals are filtered out by the soil, other
pollutants go on to damage ground water sources. Air pollution is also
a great concern. Methane and other gases released in landfills
contribute to global warming problems as well as air quality concerns.

 Creates Jobs

Recycling is more labor intensive than landfill management, requiring

more workers to sort and process recyclable waste. This can revitalize
rural areas where landfills are often located, bringing needed jobs to
the region. These manual skill jobs are particularly beneficial in areas
that were once manufacturing centers.

Possible Obstacles

• Unavailable or scarce raw material stock for production

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 • Replay is confident that it has secured good availability of low cost
post-consumer PET bottles (feed stock) derived post-consumer
beverage bottles.
• It may be possible that we would not get desired raw material.
• Company may not meet environmental standards
• This environmentally-favorable venture provides for the
development of technically feasible and economically viable
solutions to PET plastic beverage bottle recycling, as well as
environmentally aware in-house re-use practices which filter and
return nearly all of the process water to the production lines.

Industry Analysis

• According to the Crisil research 7360 companies are working in

this industry with a turnover of Rs 9200 Crore provides
employment to 3-5 million people. In
• India, per capita plastic consumption is one of the lowest in the
world. The per capita consumption is just one fifth of world
average that is 5kg.

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Turnover of Recycling Industries (in Crores)

Region PVC PET

West 156 383
East 75 86
North 338 158
South 111 139
Total 680 766

Structure of the Plastics

 INDUSTRY

 Raw Material Producers

 These are chemical and petroleum companies who

produce "virgin" plastic (sometimes called resin or
polymer) in huge quantities.

 Compounders

 These specialist companies, usually small, stock

various polymers and provide the manufacturers of
plastic goods with technical advice and the most
suitable materials or mixtures for each individual need.

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  Stockists

 These warehouses stock polymers and compounds but

neither manufacture themselves, nor provide a
compounding service.

 Specialist Manufacturers or Molders

 These buy their raw materials from compounders.

 Other Manufacturers

 Many companies are not plastics specialists but

employ molding operations in the manufacture of some
other product.

 Fabricators

 These firms cut and join sheet, rod or extrusion to

manufacture a variety of products.

Market Analysis

• Various overseas players wish to explore the Indian market and

invest in opportunities thrown open by the country, projected to
be world number 3 in plastics consumption by 2010 As shown
above the north region of India is specialized in recycling of PVC.

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 So there is a great scope of PET recycling. Apart from this the
other
• A huge market with full of opportunity.
• Absence of standard product and service
• Well connected with other rural areas
• Having good transportation facility.

Customer Analysis

The customers of the plastic industry are scattered due to lack well-
known brand names. So our first priority will be to accumulate the
defused customers. Apart from them there are few small companies
that are giving compounding services. They use to collect various types
of plastics flakes along with the virgin plastic and suggest customer
(companies) in choosing appropriate plastic. An Asha enterprise is one
compounder whom we will sell our plastics.

Competitor analysis

As we are also not alone as a supplier of PET to the companies as raw

materials there are many companies in this region that are supplying

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PET. Indira Plastics is one of them who is currently selling all types of
plastics items. So in case of business-to-business market they are our
direct competitors. Kanpur is plastic recycling city of UP. The direct
threat we will also have is with the companies operating in Kanpur.
But as the distance between Kanpur and Allahabad is 200km as well
as the road is not in good condition, so it will not affect much.

Marketing Strategy

The Company has chosen to focus on the production of plastic

packaging materials from recycled post-consumer beverage bottles.
We have identified a significant available market in the eastern part of
UP. All of our initial marketing strategy will be to secure contracts in
that segment, and after reaching full planned capacity, look to grow in
concert with that segment and related markets. We see little need at
present for further market research and development, and will focus
on continually updating our production technology in an effort to
remain in the forefront of our chosen marketplace.

Product/Service Strategy

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Regeneta will apply recycling and extrusion technology managed by
decades of industry specific expertise to create a competitive
advantage for its clients. These processes will produce clean, cost-
efficient, recycled raw material for manufacturers of thermoform,
laminate and other high value-added products, and high strength
packaging strapping for shippers of large products and pallets, thereby
reducing costs and creating a clear pricing edge among their
competitors.

Plastic bags and plastic sheets are now in high demand. And this
demand is driven by continuously increasing promotional activities.

Pricing Strategy

The pricing strategy we will use is penetration pricing. The price of all
household plastic goods we will sell will be lower than the market
price. Also for the PET flakes and bottles the price will be lower than
the competitors. A lower price enables me to get contracts of PET
bottles and sheets from various companies. 'D In case of kitchenware
and other household products we will provide combo offers and
discounts which a common customer expects.

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Distribution Strategy

We will have a distribution center in the Allahabad city that

continuously maintains the supply of goods. So the household plastics
will be sold through small local grocery shops from which the
customers can get them easily. Apart from this we will hire street
hawkers who will roam around the city and sell the goods door to door.

Advertising and Promotional Strategy

As described, we are in both B2C and B2B so for this we will use two
different promotional strategies. For B2C we will use flyers that will
have full detail of our product range, price, combo offers and discounts.
These flyers will circulate through the newspapers across whole city.
For B2B business we will promote through online social media and we
will also develop our website through which enable us to widely
spread our contact among various companies. The site will have full
details of product that are available for companies as well as end user.

Sales Strategy

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Our sales strategy is totally based upon the distribution channel and
the pricing strategies. We will have a distribution Centre in the city that
will take care of sales of household and also supply products to the
wholesalers. We will also give the industrial customers a facility to
order the products through our website which will help them in
reducing the delivery time.

Development

The development of Hind plastics required accomplishing a series of

action and formalities. Since we are new in the market we kept our
production is low initially, as demand will increase the production will
be enhanced respectively. The development process involves following
steps:

Legal formalities

Office/business setup

Future offerings and expansion plan

• In future we are looking for the production of a variety

• of plastic. These plastics will be
• LDPE (Low density polyethylene)
• HDPE (High density polyethylene)

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Development Strategy

Our development strategy will base on timely completion of the

establishment of the business Centre with low execution cost. Our
strategy will focus not only the current uninterrupted production of
PVC and PET and acquisition of customer as fast as we can, but we will
also look for the future expansion plan and execution strategy.

• Our future development strategy will focus on to chart out a careful

plan for the future expansion and growth of our business. The
development strategy will address following

Issue:

• How will we expand our services?

• Which are the new areas we will include to provide our services?
• What will be the format of the business?

Management

Promoters and six supporting staff will manage the company. There
will be five promoters of Hind Plastics. Along with promoter five more
employees will work for the accomplishment of companies' objective.z

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Operations

The facility is located at outside the city. Facility is divided in two parts
Recycling and Production unit

• Warehouse

The facility is located in an area of 3000 sqft. Apart from these two
units there will be an office that will look to the perpetual supply of
required raw material and also take care about the outbound logistics.
The production capacity is 80kg/hr. The operations will be based upon
JIT i.e., just in time. We will have contracted with the suppliers who can
supply the raw material as quickly as we want. The raw material
contains post-consumer beverage bottles and other plastic materials.
The bottles and other plastic material that can be recycled have a
specific sign from which it can be identified that it can be recycled or
not.

Stages of Recycling and Production

 'D Sizing / Chipping

 Cleaning

 Segregation.

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  Agglomerating / Coloring

 Extrusion / Palletization

 Fabrication into end Product.

Scope of Operations

Now presently our production capacity is 200kg/ day from which in

initial stages we are utilizing around 50% of it. As the business
expands, we will reach to optimum capacity utilization. We are
expecting that we will start producing more advance plastics in the
fourth year of our operations and accordingly the sales will increase
and the facility will have to be expanded.

Supply Chain

'In the city there are various small post-consumer plastic bottle
collectors. To make a continuous supply of raw material we will have
four suppliers with us. There will be one permanent supplier which will
continuously supply the raw material. In case of excess demand other
suppliers will be taken into consideration. The transportation cost will
be covered by supplier only. The finished product will be stored in the

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warehouse and according to the demand it will be send to city
distribution Centre. The distribution center will directly sell the
finished household plastics as well as to the small shops.

Our average daily demand of raw material is 300kg and the lead time
we will keep lead time of 6hrs.We keep a safety stock of 50 kg. So the
reorder point is given by Reorder point= average daily uses x lead time
+ safety

Stock Reorder point = 300 X .25day + 50 = 125 kg.

So, at each and every day we will have minimum of 125kg (safety stock+
reorder point) of raw material in our inventory.

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