A STUDY TO UNDERSTANDMARKETING OF THE RECYCLED PRODUCT

A Project Submitted in partial fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATIONBYAditya Raj(MBA/4552/2013)

DEPARTMENT OF MANAGEMENTBIRLA INSTITUTE OF TECHNOLOGY MESRA-835215, RANCHI- NOIDA CAMPUS 2013

DECLARATION CERTIFICATEThis is to certify that the work presented in the project entitled A Study to understand MARKETING OF RECYCLED PRODUCTS in partial fulfillment of the requirement for the award of Degree of Master of Business Administration of Birla Institute of Technology Mesra, Ranchi is an authentic work carried out under my supervision and guidance.To the best of my knowledge, the content of this project does not for a basis for the award of any previous Degree to anyone else.

Date : (Guides Name & Signature)Department of ManagementBirla Institute of TechnologyMesra, Ranchi-Noida Campus

HeadDept. of ManagementBirla Institute of TechnologyMesra, Ranchi- 835215-Noida Campus

ACKNOWLEDGEMENT

This project would not have been possible without the kind support and help of my mentor MR. ARUN SHARMA (PLANT HEAD OF IEISL BURARI), New Delhi-110016.More than being a guide, he has been a mentor and a buddy too. He has made sure that my stay and my project proceed without any kind of obstacles.

I would like to extend my sincere thanks to all the other staff members of IEISL.

I am highly indebted to Dr. MEENAKSHI SHARMA, Department of management, Birla Institute of Technology, Noida, for her guidance and constant supervision as well as for providing necessary information regarding the project & also for her support in completing the project.

I would also like to thank all my fellow summer interns for all the support and encouragement they provided me with, for carrying out the project.

I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciation to the people who have willingly helped us out with their abilities.

Chapter 11.1PROFILE OF THE COMPANY

INTRODUCTION

IEISL promotes environmentally sustainable solutions. The Company has established its credentials in Environmental Planning and Management, Regulatory Compliance Assessment, Waste Management, Environmental and Social Risks Assessment, Clean Development Mechanism, Energy Efficiency and Enterprise Geo-Spatial Solutions.IEISL has successfully created a niche in the Waste Sector by innovating a viable waste processing business model including - off taking of compost by fertilizer companies, initiating the retail marketing of eco-friendly compost Eco Smart. During Common Wealth Games, approximately 2, 00,000 tons of Construction andDemolition waste has been lifted from the streets of entire Delhi for processing at its facility at Burari, Delhi.The Companys Geo-spatial division is ISO 9001:2008 certified and provides sustainable solution framework integrated with spatial technology. The Company has been mandated by Airtel Africa to provide Geo-spatial data for 16 African nations.The Energy Efficiency and Clean Development Mechanism (CDM), division of IEISL offer way forward conservation and management strategies for resources.

IL&FS Parentage

Energy Efficiency Incorporated in 1987, Infrastructure Leasing & Financial Services Limited (IL&FS) is one of the India's leading infrastructure development and finance companies. The Company was promoted by the Central Bank of India (CBI), Housing Development Finance Corporation Limited (HDFC) and Unit Trust of India (UTI). Over the years, IL&FS has broad-based its shareholding and inducted institutional shareholders including State Bank of India, Life Insurance Corporation of India, ORIX Corporation - Japan and Abu Dhabi Investment Authority.IL&FS is closely working with a number of multilateral and bilateral agencies and has conceptualized, developed and managed projects across a variety of sectors like Roads, Railways, Airports, Ports, Water Supply and Sanitation, Urban Infrastructure, Waste Management, Industrial Area Development and Special Economic Zones, Tourism, Power, Hydro-Power, Telecom, E-governance, Spatial Solutions, IT Enabled Services and Environment as well as Social infrastructure projects.In an effort to enhance sustainability and lower risks in all its projects, IL&FS has adopted the Environmental and Social Policy Framework (ESPF), which has made IL&FS the first non-banking financial company in India to make Environmental and Social considerations inclusive in project development and implementation.Mr. Ravi Parthasarathy is the Chairman of Infrastructure Leasing and Financial Services Ltd. (IL&FS) and has been at the helm of affairs since the organization commenced operations in 1988.An IIM-Ahmadabad graduate, Mr. Parthasarathy has a rich and varied experience of over three decades in infrastructure, banking and financial sector. Mr. Parthasarathy is on the board of several companies. In addition, he has been co-opted on various committees of the government and trade associations in relation to development of new structures in the financial sector, infrastructure and overall economic development.

ADDRESSIL&FS Environmental Infrastructure & Services Ltd.4th Floor, Dr. GopalDassBhawan,28, Barakhamba Road,Connaught PlaceNEW DELHI- 110001Tel : +91-11-4969 1000/2001Fax : +91-11-49691099WEBSITE ADDRESS-http://www.ilfsindia.comTYPE- MULTINATIONALREGISTERD OFFICE ADDRESS-Mumbai OfficeIL&FS Environmental Infrastructure & Services Ltd.Office Permises-303, III-Floor,B-Wing citipoint, Near hotelKohinoorAndheri Kurla Road, J B Nagar, Andher(E)Mumbai-400059Tel : +91-22-40298568E-mail:info@ilfsindia.comVisit us at:www.ilfsindia.comhttp://www.ilfsenv.com

MANAGEMENT FOCUS AREA

IL&FS Environmental Infrastructure & Services Limited (IEISL), incorporated on 2nd August, 2007, is a 100% subsidiary of Infrastructure Leasing & Financial Services (IL&FS), a premier non banking financial institution of India. The Company provides end to end solutions for Solid Waste Management to Municipal Corporations and Townships in India and Abroad. Currently, we are offering services in Integrated Solid Waste Management System. Our focus areas are:

Municipal Solid Waste Management Collection, Segregation & Transportation Treatment Compost Biomethanation Refuse Derived Fuel Final Disposal Construction & Demolition Waste Biomedical Waste Hazardous Waste E-Waste (Computer, CDs Mobiles, Digital Cameras, Chipsetc.) Plastic to Fuel

1.2NATURE

Wide Range of Services Includes: Environmental Management Geo-spatial Solutions Integrated Municipal Solid Waste Management Construction & Demolition Waste Management Hazardous Waste Management Electronic Waste Management Social Management Clean Development Mechanism and Energy Efficiency

1.3Vision

Core Values

1.4 PRODUCTS RANGE

Paver Block Chequered Tile Interlocking Tile

Tech TileDumble Tile

CHAPTER 22.1 Theoretical Background

Finding Recyclable BuyersIndiana's markets for recyclable materials continue to grow. New recycling companies are coming to Indiana, and established businesses are changing their processes to include recycled content. Technology changes are expanding the kinds of materials that can be remanufactured, and business commitments to make recycled products are opening the markets for more materials. Over time, consumer demand for recycled products increases markets for recyclables. Along with these changing scenarios, prices for recyclables are subject to fluctuations as are all other commodities. This section provides a general overview of finding and contacting buyers.Types of BuyersThat remanufactures them into a new product. End-users Once recyclables are collected, they must be moved to a business or manufacturers are the businesses that actually make the new product. There are three types of buyers who provide intermediate service to collect, process, and/or ultimately sell recyclables to end-markets. They are commonly categorized as collectors or haulers, processors or material recovery facilities (MRF), or brokers, although the exact terms may very. For the purposes of the collectors and this directory, all of these are considered markets or buyers (although some recyclables may not have much monetary value).1. Collectors or haulers are typically businesses that have expanded their garbage operation to include the collection of recyclables from residents and/or businesses. Haulers most often charge for their collection service; some may pay small amounts for recyclables. Most will accept clean, unprocessed recyclables; either source-separated by the residents or commingled (mixed recyclables in a single bag or bin). These materials are marketed to an intermediate processor or to an end-use market. Because collectors or haulers generally do most of their business locally, they are often the market choice, especially for small communities that dont produce large quantities of recyclables.2. Processors (often called material recovery facilities MRFs) generally accept and process recyclables from residential, business or industrial sources. Processors typically sort materials by type and grade, and then bale, shred or granulate them to create a marketable intermediate product. These buyers sell to brokers or end-use markets.3. Brokers buy and sell recyclable materials and often arrange to have them shipped from one location to another by haulers or processors. Some brokers provide processing services, while others purchase only processed recyclables. Brokers generally sell to end-use markets, and are often able to pay premium prices because they accumulate and sell large quantities of materials. They usually prefer to purchase trailer-load quantities of recyclables.4. End-users, or manufacturers, purchase recyclable materials from a number of sources and remanufacture those materials into new products. They generally deal only in trailer-load quantities, and usually purchase materials from regular suppliers (those able to provide consistent quality and quantity on a monthly basis). However, some specialized end-users, such as animal bedding manufacturers, often purchase smaller quantities.Some general rules of thumb usually apply to these four types of buyers. First, preparation and separation requirements are usually most flexible with haulers and become increasingly more stringent with processors, brokers and end-users/manufacturers. Accordingly, prices offered are generally lowest with haulers, and increase with processors, brokers and end-users/manufacturers. Service fees usually are higher for haulers and lower for manufacturers.Contacting BuyersBefore you begin contacting buyers, determine the quantity (tons/volume) and quality of recyclable material that you are planning to market.If you are not able to exactly identify the recyclable, such as in the case of some industrial plastics, contact the potential buyers and discuss it with them. If the quantity generated is large enough, the buyer might ask that you send a sample. They will determine the exact material and whether they are willing to handle it. This is also true of scrap that is a mix of several different components.Using the provided database, begin your contacts with the buyers that best match the type and quantity of material you are marketing. For example, small generators should focus on contacting small-volume purchasers. Contacts can be made by telephone, personal visits, or requesting written information or proposals from potential buyers. Due to the cyclical nature of business, always contact the buyer before shipping recyclables as materials accepted by the market can and do change to meet current market conditions.Telephoning potential buyers allows for a quick exchange of information to assess compatibility between collector and market. Company visits can be a natural follow-up to a phone survey and provide more opportunity for questions to be answered. Written requests ask potential buyers to respond to a certain set of questions. Depending on the local legal requirements, communities can issue requests for expressions of interest, requests for proposals and/or requests for bids. Sending out a written request takes less time than other methods discussed here. Potential buyers who are serious about being considered will take time to respond.Selecting BuyersBefore deciding which company or companies you will utilize to accept or purchase your recyclables, several criteria must be considered. The four most important are processing/quality requirements, transportation arrangements, company reputation and price.Processing requirements refers to the form in which the buyer will accept materials. Recyclables can be sent to market loose, baled, and granulated, in a Gaylord box, crushed or in other forms. The type and level of processing depends on the kind of recyclable material and the market requirements. Quality requirements define limitations on the amount of contaminants that can be present in the recyclable material. Acceptable levels of contamination are usually given as a percentage of the total weight of a load of materials. High levels of contamination can make the recyclables unmarketable.Efforts to meet processing and quality requirements should be built into the collection program as much as possible. Quality control requires education, worker training, system reorganization and/or community participation (depending on the type of program). Maintaining high quality standards is essential to many recycling markets. Processing may require adequate storage space and/or processing equipment. Processing and quality requirements may differ between buyers of the same material. Recycling organizers should plan the collection program and choose markets with these issues in mind.As market competition increases, those recycling programs able to effectively and regularly meet buyers processing and quality requirements will be assured a more secure market.Transportation arrangements that must be considered include determining who is responsible for transporting materials from your location to the market, the quantity of recyclables that constitutes a "full load" and who pays for the transportation service.If the buyer will provide the vehicle to collect your recyclables, is it important to clarify who pays for the hauling, what tonnage is required and who loads the collection truck. Failure to clarify details beforehand can result in unexpected expense. If the buyer does not provide the transportation service, recycling planners must make arrangements with an alternative service.Common industry terms associated with transportation of recyclables are "FOB sellers dock" and "FOB buyers dock." These terms refer to who provides and pays for hauling recyclables. "FOB" stands for "free on board." If a buyer says transportation is FOB sellers dock, it means the buyer will pay for hauling; FOB buyers dock means the seller must pay for hauling.You should carefully examine the reputation of each company when selecting a buyer. Request that potential buyers provide several references to contact. Ask questions about the buyers track record for providing prompt pick-up and payment, adherence to signed contracts, length of time in business, and financial viability. It is also very important to have assurance that materials are actually going to recycling and are not being land filled or incinerated, especially if you are dealing with an intermediate company rather than an end-use market.Price offered or service fee assessed by a potential buyer should be considered in relation to the criteria discussed above. Purchase price should not be the most important or only criterion when choosing a market. Recyclable materials are like any other commodity: they are subject to inevitable fluctuations in supply and demand. Successful planners need to prepare a strategy for dealing with unavoidable downturns in the market. It is also important to understand that some commodities will be purchased and others will cost you to recycle. In those instances, seek to locate a market that charges a fee competitive with disposal.Potential buyers generally provide price, or a range of prices, in dollars per net short ton (metric), which is equal to 2000 pounds. An exception to this rule is ferrous metal, which is often measured in gross long ton (English), equal to 2,240 pounds. It is important to understand what a buyer purchase offer includes.When choosing a buyer, balance company reputation, processing/quality requirements and transportation costs with the market price and the specific strengths and limitations of your program.Contracting With BuyersOnce a buyer has been selected for a single material or numerous recyclables, an agreement is commonly negotiated so that each party (the seller and buyer) knows what is expected. While many sellers and buyers have done business with a "handshake agreement," a written buyer/seller agreement is recommended to protect the relationship of the buyer as competition for markets continues to escalate. If only a handshake agreement is available, the seller should be confident of the buyers references and reputation.Written agreements offered by buyers include letters of intent to purchase material and formal contracts. Provision of written agreements may include some or all of the following:

tonnage/volume requirements per day, week, or month assurances that materials are recycled and not land filled or incinerated material provision for delivery or pick-up termination provisions length of commitment pricing basis penalty clause for lack of required tonnage/volume conditions for renegotiation

RECYCLING PROCESS at PLANT

Overview of the Process Involved C&D waste will be collected from various designated sites, and transported to the plant site at Burari Any recyclables so received, will be separated from the waste before going on to the crushing stage. The waste so received, will be crushed using crushers and requisite material size would be generated depending on its use. Such material would be used for land filling, laying of roads, pavement construction and preparation molding of bricks.

Chapter 3OBJECTIVE Marketing of recycled products To promote sales of the recycled products Creating awareness among the prospective candidates

Problem To find new customers To generate more market of the recycled product on a wide range. To know the actual perception of the customers towards the recycled product. Some respondents hesitated for filling the questionnaire. The study is narrow based, because of the limited period i.e. 6 weeks, available in the organization

CHAPTER 4RESEARCH METHODOLOGY

What is Research Methodology?The process used to collect information and data for the purpose of making business decisions. The methodology may include publication research, interviews, surveys and other research techniques, and could include both present and historical information.

4.1 Research Design

Descriptive Research

A descriptive study is one in which information is collected without changing the environment (i.e., nothing is manipulated). Sometimes these are referred to as correlational or observational studies. The Office of Human Research Protections (OHRP) defines a descriptive study as Any study that is not truly experimental. In human research, a descriptive study can provide information about the naturally occurring health status, behavior, attitudes or other characteristics of a particular group. Descriptive studies are also conducted to demonstrate associations or relationships between things in the world around you.

Exploratory ResearchThe Research Design adopted to carry out this study is Exploratory Research Design. Exploratory research is a type of research conducted for a problem that has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. It should draw definitive conclusions only with extreme caution. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist.Thus, here during the execution and completion of the aforesaid study report both types of researches played a significant role i.e. first the collection of primary data by means of filling up the questionnaires. And some of the statistical and quantitative data was also needed which was collected through the secondary sources like:

Internet Companys MIS and past data records

4.2 Sources of Data Collection Primary Sources (Questionnaires) Secondary Sources

4.3 Sampling Procedure

1) Sample Size 502) Sample Unit contractors and construction companies. 3) Sampling Technique convenience sampling

4.4 Limitations of the StudyThe study has some limitations as well, which are as follows Some respondents hesitated for filling the questionnaire. The validity of this study is entirely dependent upon the reliability of the primary data collected The study is narrow based, because of the limited period i.e. 6 weeks, available in the organization

Chapter 5 Analysis & Interpretations of the Study

Are you Aware of C & D waste management YES NO

The above graph shows that 60% of the respondents are aware about it and 40% are not aware about the C & D waste management

Availability of recycling materials Large in number Less in number

What is the recycle rate of the total C&D waste in general?Below 20%20%-30%30%-40%40%-50%Above 50%

How strongly do you support the use of recycled C & D PROCUCTS?(a) Strongly (b) Moderately(c) Not at all

The above chart shows that 50% of the respondents are strongly supported ,38% are moderately supporting the product and the remaining are not at all supportive.

What is your opinion regarding the price of C&D Waste recycled products?(a) Cheaper(b) Affordable(c) Expensive(d) Very expensive

The above chart shows that 28% of the respondents think that its cheaper, 52% respondents think that its affordable,16% thinks that its expensive and rest others thinks very expensive.

Mostly in which work the recycled C&D products are used?(a) Building construction(b) Road construction(c) Land filling(d) Railway

The above chart shows that 16% of the respondents think its used in building construction,30% of the respondents said that it is used in road construction,32% said it is used in land filling and rest said about railway.

What factors you consider while purchasing material? Price Availability Others

60% respondents are with price, 24% are with availability and rest are with others

Which area do you cover for your business? Delhi Delhi NCR Outside of Delhi

50% are covered Delhi ,40% are covered Delhi NCR and 10% are covering outside of Delhi.

What type of construction material your business mainly requires? Fresh mostly Recycled Both can be used

The above chart shows that 55% are using fresh materials, 35% are using recycled materials and the rest are using both.

CHAPTER 6

FINDINGSAccording to the research done by me there were certain things I came across.. The above graph shows that 60% of the respondents are aware about it and 40% are not aware about the C & D waste management The above chart shows that 50% of the respondents are strongly supported ,38% are moderately supporting the product and the remaining are not at all supportive. The above chart shows that 28% of the respondents think that its cheaper, 52% respondents think that its affordable,16% thinks that its expensive and rest others thinks very expensive.

The above chart shows that 16% of the respondents think its used in building construction,30% of the respondents said that it is used in road construction,32% said it is used in land filling and rest said about railway 60% respondents are with price, 24% are with availability and rest are with others 50% are covered Delhi ,40% are covered Delhi NCR and 10% are covering outside of Delhi The above chart shows that 55% are using fresh materials, 35% are using recycled materials and the rest are using both.

ConclusionWorking in waste plant was a good experience; it was a totally different compared to other industries. There was a good plant experience & working professionally as an intern in the plant. It gave me experience about the problems occurring day to day in the plant & solving them with lot of discussions with seniors. Generating new customers and creating a new a link with new contractors is not a easy task, it requires times and patients .

RECOMMENDATIONS: To raise the awareness of recycled waste C&D products by-a) Advertising in newspapersb) Advertising on Television, Radiosc) Advertising on Social Media (fastest means of advertising)

Spreading awareness among the prospective customers and attract those consumers (construction contractors) who does not have the insights about recycled products. Promote and share information related to recycled products adopting tools like: Environment friendliness of the products Cost friendliness

BIBLIOGRAPHY www.ilfsindia.com www.ifls.com www.iwisl.com www.ieisl.com

Questionnaire

Name Age ..

Address .... Contact ..

1. Are you aware of C&D waste management? a. Yes b. No

2. Availability of recycling materials?a. Large in numbersb. Less in numbers

3. What is the recycle rate of total C&D waste in general?a. Below 20%b. 20% - 30%c. 30% - 40%d. 40% - 50%e. Above 50%

4. How strongly do you support the use of recycled C&D products?a. Stronglyb. Moderatelyc. Neutrally

5. What is your opinion regarding the price of C&D waste recycled products?a. Cheaperb. Affordable c. Expensive d. Very expensive

6. Mostly in which work the recycled C&D products are used?a. Building Constructionb. Road Constructionc. Land Constructiond. Railway

7. What factors you consider while purchasing material?a. Priceb. Availabilityc. Others

8.Which area do you cover your business?a. Delhib. Delhi NCRc. Outside of Delhi

9.What type of construction material your business mainly requires?a. Fresh materialb. Recycledc. Both can be used