Birex B-Plan Final

8/7/2019 Birex B-Plan Final

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B-PlanIndustrial ResidualWaste Management

Submitted by: OP-2Simranjeet Singh-50802062

Sachin Modgil-50702516

Soutik Ghosh-50702517Sumeet Malhotra-50702518

Rajan Dhingra-50702514

Surjeet Kaur-50702519

Group Leader---- Vishal Singh Patyal-50702520


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Contents

Executive Summary

Business Description

Operational Plan

Marketing Strategy

Financial Analysis

Final Words


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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.


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Business Description


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About Birex

Birex is a service company designed to offerwaste management services to large andmedium-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 Pauloand its neighborhoods, an area that includesmore than 30% of the NCR GDP.


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Why this Business??

Improve the environmental quality and the economiccost of managing waste

Environment sustainable waste management systemsmust reduce as much as possible the environmental

impacts of waste disposal, including energyconsumption, pollution of land, air and water and lossof amenity.

Economically sustainable waste management systemsmust operate at an acceptable cost.

There will always be the need to balance theenvironmental quality of a waste management systemagainst its economic cost.


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Opportunity Not To Be Missed

Waste is generally something that companies need to getrid of, preferably at the lowest possible cost.

Modern society is urging for environment control, andthis pressure will only increase.

Thus, the services related to waste management willhave a high demand in order to allow these companies todispose 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 ofwaste generated, thus demanding specialized attention.


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Volume, of Residues [ton/yearlCOMPANIESCOMPANIES

ItemItem

PMD(PlasticPMD(Plasticss

MouldMould&&dyedye

Saber paperSaber paper

LtdLtd

EastIndia(Auto)Manufacturing

Co.(P)

TVSTVS

Esteem

Industries

MicroMicro

turnersturners

PlasticsPlastics 5050 2020 4141 ------------ 4747 99

MetalsMetals 2929 ------------ 1919 126126 1616 5050

PaperPaper 1515 6565 22 22 -------- --------

GlassGlass 55 -------- ------------ 2929 ------------ ------------

WoodWood ---------- 200200 88 1010 ------------ ----------

ClothCloth 33 1515 ------------ ------------ ------------ ----------


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Products and services

1. Waste management

2. Waste collecting

3. Waste disposal4. Technical consulting


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Operational Plan


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Birex Concept

Birex


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Operational Plan

Complete solution for all kinds of waste, giving them the rightdestination in a safe way.

Collection & TransportWill be made with trucks.

Warehousing & preparation

After collection, the waste goes to a special area tobe sorted .Our premises includes trucks, lift trucks, tractors,pressing machines, cranes, conveyors, buckets


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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


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Marketing Strategies


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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-stableresidue


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Opportunity

Potential of Our services in BBN belt, Mohali,

Derabassi, Chandigarh

Economic & industrial activities growing & soindustrial residues


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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


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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-TO

TAL

SOLU

TION

Strategy


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Level of Competition

No Company have proposal to manage all

waste released by company

Competitors- Those collect specific types ofscrap

Current large companies collect domestic

waste & non recyclable materials

Use waste to landfills or to incinerators


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Why we will be able to sustain?

Creation & establishment of strong brand

name-First company for TOTAL SOLUTION

Scale & Scope of economies-W

aste Treatmentsolution once developed for clients can be

used for other companies

Forging of strong partnerships with waste

processors


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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


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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 wastedemand


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Marketing Strategy

Total Solution: solution ranges from wastecollection to final destination

Recycling, Landfilling, Incinerating or storing

Companies will be able to concentrate on theircore business, leaving solution of their wasteproblem to us

In Some Cases we may even be able to absorb

our clients' personnel & equipment whennecessary

This helps to develop a strong relationship &understand their needs & provide them highquality services


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Continue

Ethics: Market is looking for but not finding on

they can trust

Major Concern of our Clients:

Responsibilityfor the final destination of the residue remains

with waste generator & can not be transferred

to waste processors


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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 ofISO 14000


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Sales Strategy

Unique in our Creative & flexible approach in

order to solve our clients waste problem

I

dentification of residue type Process begin with evaluation meeting with

future client

Our representative will analyze the scrapoutput & recommend most efficient collection

system


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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 organizations day to

day & long term planning


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Pricing Strategy Existing

ClientsFinal

Destination

Middleman

150% P=100%


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Pricing Strategy Birex

ClientsFinal

Destination

Middleman

125% P=100%

Birex


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Guarantee a better price because?

Inefficient agents B/W waste generators &

final processors

W

aste often is not properly selected Long term relationship with waste processors

thus will be able to obtain better pricing


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Contd

Through this pricing structure both clients &

Birex will be benefited

Birex will be able to realize healthy profitseven though we maintain low margin because:

1)Lean cost structure

2) Dispose of waste in Large quantities, to

achieve economies of scale


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Contd.

WasteManagement: 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)


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Advertisement, Promotion

Participation in seminars regarding wastemanagement

Write technical articles for specialized

magazines

We believe endorsements made by ourcustomers will be profitable way of pushing

our message Set up ofInternet Home Page describing our

services & successful experiences


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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


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Placement Analysis

Birex will be strategically located in BADDI

where our target costumers are located

Transportation cost components is major forour business

Center location will minimize fuel expenses &

improve truck productivity


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Budget

Our budget for Sales & marketing is 3% of

revenue

This will cover expenses like travel, events &advertisement


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Result from Research

Declared quantities are similar to those

indicated..

Response was positive, particular in referenceto TOTAL SOLUTION

They want ethical attitude towards

Management of residues

Our venture help them to obtain ISO 14000

Certification


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Financial Plan


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Start up Expenses

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

Fixed Costs (One Time Investment)


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Operating ExpensesFirst 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) 6000Vehicle permit expenses 3000

(Raw material) 388200

Total 3,98200

Total 4,59200


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Funding

Cash in Hand

8,00,000

Friends/Relatives

3,00,000

Founder will invest


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Revenue Model

EstimatedProfit


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Financial Projections

Revenue Grows @ 30% /year


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Break Even Analysis

2010

22000010

24000010

26000010

28000010

210000010

212000010

214000010

2011 2012 2013 2014

Break Even Point

Fixed Cost

Total Cost

Revenue


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FinalWords BIREX will always provide a responsible solution according to

the law, controlling agencies standards and in accordance withISO 14000

Undoubtedly, the approach of offering a TOTAL SOLUTION for

the clients who will no longer have to manage their industrialresidues 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


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Thank You

Documents

Birex B-Plan Final