Srap Yard B Plan

Pernem Waste Management Industrial Estate

Pre Finance Assignment
Queen - ENIGMA

Submitted by:
Muhammad Mustafa Hamidi
Staycy Dsouza

18th March 2013

Pernem Waste Management Industrial Estate
Introduction
SCRAP yards are not pretty places. It is difficult, perhaps even impossible, to store scrap, which comes in varying shapes and sizes, in neat rows or pile it like groceries on the shelf in a super market.
Scrap does not lend itself to neatness and this is one reason why these yards are detested–because they interfere with the landscape. However, these scrap yards serve an important economic and environmental purpose.
We planned to make an Industrial Area for almost 381 scrap yard industries in Goa which most of them are located in the residential area and working illegally. For each scrap yard industry that will decide to settle in our industrial area we will be paying them Rs. 2,00,000 loan @ 10% interest rate for period of 2 years just to help them in the startup cost which they will be facing will transferring their business into our industrial area.
In this industrial area the 3 stakeholders who have started this business will build one Scraps Recycling Industry as a source of income and also to provide easier and faster opportunities for those scrap yard industries which are coming here, to sell their scraps faster with lesser costs.

Vision
Recycling is an excellent way of saving energy and conserving the environment. The foundation of our company is committed to the environment and providing waste solutions.

Mission
To revolutionize the ways of waste management in an environmentally sound manner, through cost effective and efficient solutions; by employing the technology; while contributing a greater value to the economy.

Set up a trade zone for the scrapyard industry to work out in a systematic manner

Layout of Industrial Estate

The industrial estate situated in Pernem at a distance of around 9 Km from the highway in a (100 acres = 4,047,000 square meter) area. This estate will be a permanent location for all scrapyard industries as it is far from the residential area and does not create any kind of health and environmental problems for the residents of Goa.

Types of scraps – Nature of the scrap

Metal Scrap
Ferrous
* Ferrous is a metal classification that includes magnetic materials, such as carbon steel, stainless steel and iron. Ferrous metals tend to be heavy and dense, although they do tend to corrode more easily than non-ferrous metals.
Non-Ferrous
* Non-ferrous metals contain no iron and are not magnetic. Brass, aluminum, copper, bronze, tin, lead, magnesium, pewter and zinc are among the metals in this group.
Wire
* Wire should be separated so it can be weighed and graded.
Automotive
* Metal recyclers also take automobiles and automotive motors.
Appliances
* Appliances should be dismantled into plastic, metals and wires.
Plastic waste
PET (Polyethylene terephthalate) * Fizzy drink bottles, oven-ready meal trays and water bottles
HDPE (High-density polyethylene) * Milk bottles, detergent bottles, yogurt and margarine tubs, cereal box liners and grocery, trash and retail bags
PVC (Polyvinyl chloride) * Cling film (plastic food wrap), vegetable oil bottles, loose-leaf binders and construction products such as plastic pipes
LDPE (Low-density polyethylene) * Dry cleaning bags, produce bags, trash can liners, bread bags, frozen food bags and squeezable bottles, such as mustard and honey
PP (Polypropylene) * Ketchup bottles, medicine bottles, aerosol caps and drinking straws. E-waste * Computers * Televisions * Cell Phones * Some more e-wastes

Glass scrap * Glass bottles * Bangles * Mirrors, windshields and window glass * Light bulbs

Include the economic benefit, sectorial growth, industry status, profitability & advantages of these industries
Recycling saves money
There are many economic benefits of recycling, one of which includes saving money. It is cheaper to make products using recycled materials because a lot more energy (ie. 90% more) is needed to extract aluminum from its raw. Subsequently, products that are made from recycled materials can also be purchased at a cheaper price. Isn’t this one marvelous recycling benefit!
Recycling benefits the economy by also reducing expenditure in other ways
As more items are reduced, the amount of waste that needs to go to the landfill or incinerator is also reduced. Through recycling, communities can save on their waste disposal costs (eg. landfill costs), which can be very expensive. In addition, through the sale of the recycled materials, communities can also offset the cost of their waste disposal, thereby further reducing their expenditure.
Subsequently, acres and acres of landfill space can be saved, and be diverted for other uses. In countries where land is scarce, saving on landfill space could mean savings by the million, and in fact earnings, if the land can be used for other revenue-generating functions.
With recycling, everything can be used to its maximum potential. Nothing is wasted. Such cost-effective practices not only saves money, but the environment and our resources too.
Evidently, recycling benefits the economy and beyond!
Recycling creates jobs and generates revenue
In addition to the above recycling benefits, recycling brings other benefits to the economy.
Recycling creates new businesses such as for transporting, processing and selling recovered materials as well as companies that manufacture and distribute products made with recycled materials.
And in turn, jobs are created. When you recycle, more jobs are created than when you merely discharge your waste. Dumping 10,000 tons of waste in a landfill creates six jobs while recycling 10,000 tons of waste creates 36 jobs.
Unlike jobs in waste disposal, jobs in the recycling industry add value to the materials, as such contribute to a growing labour force of skilled workers, such as material sorters, dispatchers, truck drivers, sales representatives, process engineers and even chemists. Many of these jobs pay above the average national wage and many are in urban areas where jobs are desperately needed.
Other than creating new businesses and jobs, recycling benefits the economy and generates revenue through material sales as well.

Recycling as a promising industry
Indeed, the recycling business sector is growing and developing into an extremely promising industry.
As a sunrise industry, it certainly has a lot of potential for flourishing and generating jobs and revenues worth millions.
If every household, community, city, state, and nation thought along the same lines, and invested a little time and effort into sorting out waste at home, office and community, imagine how much recyclables would be available to the recycling industry! And it would mean that almost every single item used and thrown can be recycled!
The recycling industry is now limited, mainly to paper, glass, plastic, aluminum, and other metals.
But if more research can go into discovering creative and productive ways of recycling more products (and even alternative sources of energy), it would certainly save this planet more resources, and from pollution. As well as save our countries money, and help us earn money!
Profitability
Business is an entity that covers lots of activities within. Business can be done either at a large scale or can be restricted to small scale. In fact, small businesses have contributed a large part to the business economy in U.S. A small scale recycling business is one of such kind which is lucrative type of enterprise.
Recycling business is an industry where huge amount of money is inflowing. Thousands of employees all over the nation are getting benefited by this business in U.S. Though many people throughout the country followed recycling, only very few people over looked this as a business and are making profit out of it.
This business doesn’t require a huge amount of money to be invested and it can be managed by anyone by sitting at home. There is a general idea that only massive waste management companies can earn money by recycling the waste. But, this is wrong. Even a small scale waste management system can earn a considerable amount of profit.
For starting a recycling business it is not necessary that the person should straight way enter the filed for collecting the wastes from the society. Instead, hardworking labors can be hired for collecting the wastes.
Advantages:
The small scale recycling business has many advantages over the other. The amount of recyclable matters available is unlimited. It requires minimal investment and has high profit. Only a very few companies are involved in this business and so the competition level is very low.

Revenue generated by this industry – major stakeholders
In our business the sources of finance will be bank loans and the 3 stakeholders who came to gather for starting this business.

For the first 2 years we are making losses but after the 3rd year we start making profits. Breakeven Point | Year | Profit/Loss | Income | Expense + Tax | 1 | -INR 63,879,361.00 | INR 181,005,000.00 | INR 244,884,361.00 | 2 | -INR 13,741,000.00 | INR 237,030,000.00 | INR 250,771,000.00 | 3 | INR 8,808,800.00 | INR 260,154,000.00 | INR 251,345,200.00 | 4 | INR 41,176,800.00 | INR 316,180,000.00 | INR 275,003,200.00 | 5 | INR 20,180,300.00 | INR 290,790,000.00 | INR 270,609,700.00 | 6 | INR 84,042,000.00 | INR 383,250,000.00 | INR 299,208,000.00 | 7 | INR 13,160,000.00 | INR 280,490,000.00 | INR 267,330,000.00 | Identify the problems and give appropriate solutions for this industry
Huge Land
We have a problem of land at the estates. The scrapyards need huge areas which are just not available at the some estates.
Stiff oppositions from the residential people and authorities like village Panchayats
It is not just in Goa that scrapyard owner’s face opposition, it is the same in the rest of the country. Wherever there are industries there are bound to be scrapyards. The people have ‘allergies’ to scrapyard without realizing that if scrapyards do not exist then scrap material will not be recycled.”
Major fires in Scrapyards
The fire services department
In 2012, two major fires broke out in two scrapyards at Dhavali, Ponda close to the residential areas after non-commercial industrial waste was set on fire destroying several trees. Cases have been registered under the Environment Protection Act against the scrapyard owners
Health department
Carries the threat of air pollution as the collected waste is often set on fire.
Storage and Transportation:
Recycling business requires transportation and storage as the main concern. Cars and trucks can be more effective in this business. This helps in collecting wastes from a wide area around the neighborhood. Wastes can also be collected from other parts of the city if trucks are used in this business.
Then, some recycling containers would be required. A separate area well enough to store a considerable amount of garbage should be used either behind the backyard or a new building with limited space can be hired for a small amount. More amounts shouldn’t be invested. Amount spend on storage should be as minimal as possible.
Material identification:
The items which would produce more recycle value should be chosen and collecting those items should be of main focus. Choosing the item is proportionate to the storage space needed. For example if one has chosen to collect newspapers, books and plastics, then more storage space would be required whereas if used cell phones, batteries and other electronic items are to be collected then less storage space should be sufficient. After identifying the material, then places where these materials will be available in large quantity should be identified.