2. VISION
We aspire to create a techno green India in
the field of waste management for
sustainable development of the environment
with which society interacts.
By AKR
3. 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 - working 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.
By AKR
4. 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
5. 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 !
By AKR
6. 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
By AKR
7. 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
By AKR
8. 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
By AKR
9. › 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
10. › 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
By AKR
11. › 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
By AKR
12. › 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
By AKR
13. › 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
14. 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
By AKR
15. Appraising Resources
RESOURCES CHARACTERSTICS
TANGIBLERESOURCES
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.
INTANGIBLE
RESOURCES
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.
By AKR
16. 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
17. Value Chain
Legal
support Financing
through
debt
Skilled
&
unskilled
workforce,
contractual
workforce
Skilled
workforce Skilled
workforce
Pirolysis
Gasification
Land,
Infrastructure
and
Machineary
bio
degradable
non-‐biodegradeble
domestic
waste
medical
waste
industrial
waste
sludge
waste
treatment
according
to
category
of
waste
transportation
service
of
municipal
corporation
syn
gas,
electricity
slag
B2B
marketing waste
mgmt.
solutions
INBOUND
LOGISTICS OPERATIONS OUTBOND
LOGISTICS MARKETING
&SALES SERVICES
Primary
Activities
Accounting
FIRM
INFRA
STRUCTURE
HR
MANAGEMENT
TECHNOLOGY
DEVELOPMENT
PROCUREMENT
Support
Activities
By AKR
18. Resources & Capabilities as
Basis for profitability
RateofProfitInExcessoftheCompetitiveLevel
IndustryAttractiveness
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
CompetitiveAdvantage
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
19. 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
