Project proposal (hb pvt ltd)
Transcript of Project proposal (hb pvt ltd)
Hindustan Bio-energy Pvt. Ltd. … Creating Techno Green India
Presented By: AKR
VISION
We aspire to create a techno green India in the f ield of waste management for sustainable development of the environment with which society interacts.
By AKR
MISSION
To b e t h e l e a d i n g i n t e g r a t e d w a s t e management company - work ing in a competitive environment, delivering sustainable waste management solutions to meet the society needs. We are dedicated in creating competitive professionals and emphasizing on the sound economic development to its stakeholders.
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GOALS � To comply with environmental laws and regulations and thus maintaining
corporate and departmental environmental monitoring programs to ensure compliance with governmental requirements
� Provide a comprehensive service to manage waste problem and become a leading force in recovery and recycling of waste
� Improve our environmental standing by turning waste into profit and provide our customers with exceptional waste collection, recycling and disposal services that protect, preserve and improve our environment and the quality of life in our community
� To conduct our operations in a manner that demonstrates respect for the quality of the environment
� To co-operate with central and state governments in analyzing emerging environmental issues, finding solutions to environmental problems, and developing cost-effective, scientific environmental standards
� To maintain effective environmental procedures and equipment, consistent with available technology
� To respond quickly and effectively to environmental incidents involving facilities, equipment, or products under our control
� To provide environmental training programs for employees, emphasizing individual responsibility for sound environmental management By AKR
Our Customer Our customer ranges from:
� Municipal Solid Waste (Limited Landfill) � Biomass and Agricultural Wastes (Burn on Site – emissions
problems) � Sewer Plant Sludge (Limited landfill availability) � Medical & Hospital Waste (Hazardous Landfill) � Refinery & Oil Processing Wastes (Hazardous Landfill) � Used Tires (Hazardous Landfill, Local Nuisance, Fire Danger –
equiv fuel to coal) � Food, Beverage, & Cosmetic Manufacturing Waste (Landfill
Disposal)
If it contains organics…it’s a fuel to us and a disposal problem solved for you !
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MACRO ENVIRONMENTAL ANALYSIS Macro Environmental
Sector Trends Impact on the Industry Opportunity/ Threat
Social
Increasing health consciousness and awareness regarding waste disposal
Positive impact on the industry growth
Opportunity - will get support from society to bring this initiative functional
Technological More efficient waste disposal system
Positive impact as the industry is bringing the latest technological innovation in the field of waste treatment
Opportunity - more efficient and eco friendly system
Economical
Increasing currency exchange rate and inflation rates, which is increasing cost of goods
The procurement cost of machinery and spare parts will increase
Threat - the fixed cost and the maintenance cost will increase
Political
Government is getting sensitive towards increasing waste handling issue and supporting venture into the sector
Positive impact on the industry growth
Opportunity -to establish the industry and availed required support from the government
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PORTER’S FIVE FORCES � THREAT OF NEW ENTRANTS
Item Key Threat of
Entry (TOE)
Supply side economies of scale
Supply side economies of scale are high. LOW
Demand side benefits of scale The byproducts of this process are essentials required by petro chemical industries, pharmaceutical industries, power supply industries etc. Due to this, these industries can avail these products at lower prices. The demand side benefits of scale are high.
LOW
Customer switching costs The switching cost of the customer is high as the other alternatives to waste disposal are relatively costly and do not abide by the environmental norms.
LOW
Capital requirements The initial working capital in this project is very high and so new entrants should have enough on their hand to function in this market. Moreover if a company has capital intensive assets it can reduce their costs to a large extent but in its absence it has to depend on competitors who may take advantage of it.
HIGH
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Item Key TOE
Incumbency advantages independent of size
There is incumbency advantages as the technology used is advanced i.e. efficiency of this technology are 60% which helps in production of high quality by products. This may require huge initial investments but the price per unit of produced product reduces. As the raw materials are readily available by the municipality corporation of the city this results in further cost reduction. Moreover the location cost of the waste treatment plant is based on garbage disposal areas which further reduce the expenses.
LOW
Unequal access to distribution channels
Since the existing distribution channels i.e. municipality corporations, electricity industries and petroleum industries are readily available in form of partnership projects, there is no unequal access to distribution channels.
LOW
Restrictive government policy
There are no such restrictive government policies. Government encourages such projects in the form of public private partnerships. Moreover government encourages FDI into this market increasing competition.
HIGH
History of past retaliation There is no such history of past retaliations in this market. Future retaliations may be in the form of more players entering into the market with advanced technology and proposing competitive prices on their product.
HIGH
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� POWER OF SUPPLIERS Item Key
Power of Suppliers (POS)
No of suppliers relative to No industry players
No of suppliers for the 70% of Machinery and spare parts is large in no compared to no of industry players.
HIGH
Cost (to industry players) of switching between suppliers
The switching cost of supplier is very low as most of the machinery parts are standard parts and easily available in market.
LOW
Suppliers offer products that are differentiated
Products offered by suppliers are mostly standard product, which mean it is not differentiated.
LOW
Substitutes to what the supplier group provides
Substitutes for machinery and spare parts are easily available.
LOW
Suppliers can integrate forward into the industry
supplier cannot integrate forward as the parts need to be assembled from different suppliers
LOW
Dependence of supplier group on the industry
Supplier is less dependent on the company as those machine are general purpose and can be used in other functions as well
LOW By AKR
� THE POWER OF CUSTOMERS Items Key
Power of Buyers (POB)
Number of buyers relative to number of industry players
There are large numbers of buyers of the byproducts of the waste treatment plant. Mostly buyers are pharmaceutical industries, petro-chemical industries, cement industries, power generation industries, metal scrap industries etc. The number of industry players is relative low.
LOW
Buying volume per average transaction
Each buyers volume is significant and due to discrete nature of the order (full order or no order), buyer has some level of bargaining power.
HIGH
The industry’s products are standard or undifferentiated
The industry byproducts are standard although the waste management solutions offered by the company are differentiated.
HIGH
Cost (to the buyers) of switching between players
There is no such switching cost associated with buyers as they can easily switch to alternative products at no cost.
HIGH
Buyers have a credible threat of integrating backward
Presently no such buyer has integrated backward and so no such threat exists. But sometimes an aggressive buyer may integrate backward in order to avoid bargaining with suppliers.
LOW
The products it purchases from the industry represent a significant fraction of its cost or expenditures
The waste management solution provided is of significant cost to the buyer. The byproducts also represent significant fraction of buyer’s expenditures.
HIGH
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� THE POWER OF CUSTOMERS
Items Key Power of Buyers
(POB)
The customer group earns low profits, is strapped for cash, or is otherwise under pressure to trim its purchasing costs
The customer group earns moderate profits and at the same time the expenses on the byproducts do not constitute significant part of the cost structure.
LOW
The quality of buyers’ products or services is affected by the industry’s product
The waste management system would be considerably improved by providing the waste disposal solutions.
LOW
The buyer’s overall costs are significantly affected by the industry
The buyer’s overall costs are not significantly affected by the industry.
LOW
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� THE THREAT OF SUBSTITUTES
Items Key Threat of
Substitutes (TOS)
Substitutability of the industry’s product (availability and comparability of substitute’s price/performance)
Substitutes are available in the form of disposal landfills which are becoming scarce and extremely polluting. Other substitutes are available to power generation industry, pharmaceutical industry etc. but are at higher costs which is a disadvantage.
LOW
Profitability of substitute product’s industry
Moderate profitability of substitute product’s industry.
HIGH
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� RIVALRY AMONG EXISTING COMPETITORS
Item Key Rivalry within
industry
The product or service lacks differentiation or switching costs
The industry byproducts are standard although the waste management solutions offered by the company are differentiated.
Not much rivalry
Fixed costs are high and marginal costs are low
Fixed cost is high in terms of huge investment in machinery
HIGH
Capacity must be expanded in large increments
the capacity of the plant is easily scalable and there are means for intermediate product storage
LOW
The product is perishable The product is not perishable. LOW
Competitors are numerous or are roughly equal in size and power
competitors are few in no as in providing waste management solution, hence it stands low in competitors
LOW
Industry growth is slow Industry growth is high due to invitations and support from government
LOW
Exit barriers investment is huge hence exit barrier is high HIGH By AKR
KEY SUCCESS FACTOR � What do Customers want?
(Analysis of Demand) *Low Price
*More Efficient waste disposal system *Clean environment *Environment friendly solution *Economical solution
� How do Firms survive competition? (Analysis of Competition)
*High Fixed Cost *Excess capacity - easily scalable *Highly efficient technology *One stop solution provider *Economical - Intense pricing *Localization of plant
� Key Success Factors Cost Efficiency Include:
* Low cost location * Easy scalable * Highly efficient technology * Environment friendly
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Appraising Resources RESOURCES CHARACTERSTICS
TAN
GIB
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Financial
Require initial fixed investment of Rs. 3.5 Crore (estimated)
Debt Financing & Government funding under PPP model
ROI 25-30%
Physical
Plant and equipment: Technology used : Conversion through pyrolysis
Shredder, Pulverizer, freeze drying chamber, grinder, gasification furnace, steam mixing chamber, gas turbine.
Plant capacity: 10 tons of organic waste Raw materials: Organic and inorganic waste Location: near sewage water treatment plant
Land & building: on lease, private-public partnership with the government.
INTA
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Technology Pyrolysis Gasification
Reputation
Company’s reputation: Tie up with government
Maintaining cordial relationship with electricity boards & industries
Good relationship with suppliers
HUMAN RESOURCES
Training:
Train the skilled labour with the upcoming technology of waste treatment
Employees should be committed to add value to the organization and contribute in environmental up gradation.
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Organizational Capabilities Function Parameters Capabilities
Corporate Management Financial Management Yes
Coordinating business units No
MIS Speed and responsiveness through rapid information transfer No
R&D Research capability No
Development of innovative new products Yes
Manufacturing Efficient volume manufacturing Yes
Flexibility Yes
Design Design capability Yes
Marketing Quality reputation Yes
Responsiveness to market trends Yes
Sales, Distribution & Service Efficiency and speed of distribution Yes
Customer Service Yes By AKR
Value Chain Legal support Financing through debt
Skilled & unskilled workforce, contractual
workforceSkilled workforce Skilled workforce
Pirolysis Gasification
Land, Infrastructure and Machineary
bio degradablenon-‐biodegradebledomestic wastemedical waste industrial wastesludge waste
treatment according to category of waste
transportation service of municipal corporation
syn gas,electricity
slagB2B marketing waste mgmt. solutions
INBOUND LOGISTICS OPERATIONS OUTBOND LOGISTICS MARKETING &SALES SERVICES
Primary Activities
AccountingFIRM INFRA STRUCTURE
HR MANAGEMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
Support Activities
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Resources & Capabilities as Basis for profitability
Rate
of P
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In E
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Barriers to entry
Patents No Patents
Brands No existing branding
Retaliatory capabilities -
Monopoly Market share Possibility of high market Share
Vertical bargaining power Firm size
Financial Resources Public Private Partnership
Co
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Ad
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Cost Advantage
Process technology Yes
Size of plants Land area: 12000 sq. feet is sufficient
Access to low-cost inputs Yes
Differentiation Advantage
Brands No existing branding
Product technology Yes
Marketing, distribution Yes
Service capabilities Yes By AKR
Summary:
� “HB Pvt. LTD.”(Hindustan Bio-energy private limited) aims at creating wealth and jobs by building a new energy economy from organic waste. Company works in the field of generating bio-energy through pyrolysis.
� The HB Bio-waste to energy is a vision of building a better India and a better world. Hundreds of thousands of tons of waste are discarded every day. Some of it is recycled. Most of it winds up in landfills. These landfills are scars on our planet that is prone to disappear for thousands of years.
� Currently, in metropolitan and semi-metropolitan city, restaurants spend huge sums of money on food products that quite often wind up in the trash. That trash, in turn, feeds millions of cockroaches and rats that spread filth and disease in the city.
� Our mission is to utilize these trashes of restaurant – organic waste in order to create a system that is financially and environmentally beneficial.
“Let’s create a Techno Green India”
By AKR
Thank You
By AKR