Alternate Waste Technologies
Transcript of Alternate Waste Technologies
Alternative Waste Technologies
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Market Trends in Nairobi, Kenya 600M people in sub-Saharan Africa rely on dirty fuels (firewood, charcoal and kerosene) for cooking
At least 14,300 Kenyans die
yearly from health-related
complications as a result of
indoor air pollution
85% - Informal household
settlements earn between
$3 – 5 USD per day, at least
50% is spent on cooking fuel
Source: NY Times
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Market Sizing in Nairobi, Kenya The demand for traditional charcoal is driven by social, environmental and economic elements
The current Nairobi demand of
charcoal stands at 2.4M
Tonnes annually
135,000ha of fast-maturing
tree species needed to meet
demand (Deforestation)
Population Pressure: Nairobi
has a population of 6 Million
People = 985,016 Households
60% of the population lives in
informal settlements –
591,010 Households
Environmental Implications
Urbanization: A 1% rise in
urbanization can increase
charcoal consumption by 14%
Nairobi population grows
annually at a rate of 4.15%
due to urban migration
82% charcoal consumption in
urban areas
Social Demand Drivers
The charcoal market is
estimated to be generating an
annual market value of over
Ksh. 32 billion (US$427m).
The industry reportedly
employs almost 1 million
people on a part and full-time
basis across the value chain
Informal household
settlements earning between
$3 – 5 USD per day, almost
50% of their daily income is
spent on cooking fuel
Economic Drivers
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Unique opportunity to invest in an innovative renewable energy social enterprise 1
Steady stream of recurring revenue with a strong business proposition 2
Addressing environmental issues by providing a sustainable energy source 3
Planned road map towards an asset-light franchise owner 4
Platform to create jobs and benefit societies by driving social good 5
Key Investment Highlight Sustainable business model with a social and environmental impact
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Introducing AWT AWT produces environmentally-friendly briquettes that are affordable for the masses in Kenya
Outcome:
Affordable, healthy and eco-
friendly agro-waste charcoal
alternatives across Kenya.
Clean biomass briquettes to
mitigate against climate
change and deforestation.
Vision:
To be the preferred supplier
of affordable and quality
Biomass Briquettes in Sub-
Saharan Africa
What We Do:
Agricultural waste can be
turned into a completely
environment-friendly source
of energy through briquetting
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Current Business Strategy AWT current growth strategy have led to a 30% CAGR from 2017-2018
Our current growth for 2017-
2018
Proven Business
Model
124,389
161,706
62,195
80,853
37,449 44,322
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2017 2018
Briquettes Sold (Kg) Total Revenue ($) Gross Profit ($)
+30.0%
Raw Material:
Rice husks -
Mwea Rice
Scheme
Charcoal dust -
Informal
settlements
Starch Powder
from agricultural
farmers
Sales
Agents:
Out of
School
Youths/
Youths at
risk
Model:
MPESA
Pay- go Model
Bulk discounting
Our Functional Structure
• 2017 to 2018: Organic growth (30%) under AWT,
focusing solely on Lang’ata sub-county with 35,714
Households.
• 2018: Supplying to 714 regular households in Kibera
Slums
Operations
Finance
Marketing
AWT
Kenya
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Value Proposition Affordable | Waste-free | Top quality
Consumers Society Value creation
Summary AWT
Quality
Consistent and burn longer
Preference to quality
Affordable price
AWT’s Price:
Ksh 50/KG
Competitor's Price:
Ksh 100/KG
Pro-Environment
Agricultural Wastes
Little to no residue
Consistent quality
Consistent Heat Burn longer
Value proposition
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Competitive Landscape AWT is positioned to produce low price and healthier briquettes
Unique Features:
✔High energy content
✔Low price
✔High heat intensity
✔Longer burning time
✔Easily extinguishable
✔Lower levels of smoke
production
Non-
Healthier
Briquettes
Healthier
Briquettes
High Price
Low Price
Current Business Model AWT adopts a dual market strategy approach through a B2C and B2B model
Market Niche: Informal
Settlements
Dual Market Strategy: While serving the B2C Household units, we get to maximize on the B2B clients (informal schools
and Street food vendors) at no extra additional cost (Same production and sales team) therefore generating more profit
for the business.
B2B
B2C
Individual Household Unit
Informal Schools Street Food Vendors
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Sale of briquettes to franchisees
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Current Business Model AWT operates a franchise model to complement its traditional business model
AWT’s Forecasted Financial Contributions
Career Progression within AWT
Franchisee Supervisor Manager Employee Trainee Screening
Option of employee buy-out for prospective franchisees
On-the-job training and career development Em
plo
ye
e P
ers
pe
ctive
A
WT
Pe
rsp
ective
Reduce AWT’s business stake
100%
Owned
Franchisee-
Owned
Selling
stakes
Selling briquettes to direct consumer
Note: Recruitment is in Partnership with Generation Enterprise (NGO)
Proposed Business Model AWT has plans to adopt an Ownership Business Model in the long run to drive business growth
• Thorough research, industry
partners etc, AWT establishes
business that can employ low-
skilled youth
• AWT recruits skilled
Entrepreneurs in Residence (EIR)
to manage the franchise business
and fellow employees (BOP
youths)
1 Business Concept Development
(AWT + EIR) • Fellows who complete all the in-
house training workshops to
satisfaction are eligible to
participate in the next interview
day for soon-to-be launched new
AWT business
3 Self-selection for AWT Businesses
• The business grows and hires more
employees (surfaced and screened based
on the in-house trainings), high performing
fellows increase responsibility
• All employees benefit from weekly training
workshops, feedback and personal growth
plans
• AWT facilitates funding of the venture as it
grows, either via AWT capital or partner
investments
5 Business Growth (AWT + EIR + Fellows)
• AWT through Generation
Enterprise holds regular day-
long training workshops on life
skills, business skills and
entrepreneurial mindset – 3
weeks
• 1-week apprenticeship in an
already established franchise
outlet
2 In-house Training Workshops
(AWT + Fellows) • AWT launches the business with the
EIR and screens and hires 10-20
BOP youths who will learn and earn
on the job
• The business is incorporated, with
AWT owning 100% equity at first,
but with a transparent growth plan
that stipulates ownership handover
after certain milestones
4 Business Launch (AWT + EIR + Fellows)
• Certain growth milestones are met (profitability,
number of jobs created, number of youths
developed and promoted etc)
• Eligible employees have the option of greater
ownership (e.g. buy equity in business through
payroll deductions)
• AWT reduces its shares to zero or close to
zero; may continue to monitor and advice for a
fee
6 Paths to Ownership (AWT + EIR + Fellows)
Path to ownership Growing the business Selection
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Business Growth – First Strategy Increase Production of Biomass Briquettes
Previous Production – 350Kgs per day Current Production – 1000Kgs per Hour
Higher production enables AWT to aggressively expand its market reach
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Business Growth – Second Strategy Increase Market Share in Nairobi County for upcoming 5 years
1. Lang’ata – 4 (10,714HH)
2. Westlands –3 (6,250 HH)
3. Starehe – 4 (5,109 HH)
4. Dagoretti –6 (12,146 HH)
5. Embakasi –3 (21,822HH)
6. Kamkunji – 3 (8,237 HH)
7. Makadara –3 (6,683 HH)
8. Kasarani – 6 (9,336 HH) Current Operations
Future Expansion
Distribution Outlets in 32 informal Settlements across 8 sub-counties: Total = 80,207 Households (HH)
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Sales Strategy Increase Market Share in Nairobi County for upcoming 5 years
SALES PER FRANCHISE/ PER AGENT
1 Franchise Month 1 of establishment
Quantity 64,000
Agents 25
Quantity (kg)/ Agent 2,560
1 sales agent/kgs/month 2,560
No of days/month 24
Sales/day
106.67 2.2 bag per day
Note: Each franchise unit requires 25 agents due to the expansive geographies to
be covered to give each agent high potential for success.
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Team AWT experienced team is equipped with local expertise and a variety of business acumen
Stella Sigana
CEO
Eric Angula
Marketing
Nyakeriga
Emmanuel
Partnerships and
Strategy
Nyamagesa Laban
Admin and Human
Resource
Moses Wakala
Agricultural
Engineer
Consultant
Henrie Mussa
Accounting and
Finance
Consultant
Management Team Brand Ambassadors Team
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Fundraising AWT is raising USD$250,000 (Loan) financing to fund business expansion
12% Interest $6,488
USD – 2 Years
Improved distributio
n efficiency
by 35%
Improved production output by 96%
18 Distributio
n points
Additional market
segments: Camps
and Lodges
Return on Investment Uses of financing (USD$)(1)
(1) Breakdown of uses: Lease Facility include lease of GoDown Facility, Capex include purchase of carbonization machine, crusher and mixer and truck, Training include recruitment and training expenses, Working capital includes purchase of raw materials, Mgmt includes salary for COO, CMO, CFO and plant operation manager
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Usage of Funds for Current & Future Milestones AWT will utilize the $50,000 funds raised to improve sales strategies, channels and outreach
62 81
1,173
3,183
5,194
7,204
9,215
5 5
50
0
10
20
30
40
50
60
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1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2017A 2018A 2019F 2020F 2021F 2022F 2023F
Revenue Generated Funding support
Funding support will supercharge
growth (USD’000) No. of employed sales agent
124 162 2,688
7,296
11,904
16,512
21,120
-
5,000
10,000
15,000
20,000
25,000
2017A 2018A 2019F 2020F 2021F 2022F 2023F
No. of tons of briquette sold (‘000
tonnes)
6 15
183
339
497 553
679
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100
200
300
400
500
600
700
800
2017A 2018A 2019F 2020F 2021F 2022F 2023F
210 714
16,964
34,219
56,041
70,961 80,297
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10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2017A 2018A 2019F 2020F 2021F 2022F 2023F
No. of household reached
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Key Business Metrics AWT is committed to delivering Social and Economic Impact through its business operations
900 Jobs
created
Directly
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Distribution
units
80,207
Households
units
Cumulative
Lives
Impacted –
3,659,627
Increasing
household
economic
finances by
15%
Household
cooking
income
saved by up
to 50%
Delivering Social and Economic Impact
Thank you
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Appendices
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Appendix A: [Insert Process]
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Appendix B: Rice Husks Carbonization
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Appendix C: Briquetting on Single phase extruder machine
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Appendix D: Sun Drying of Biomass Briquettes
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Appendix E: Packaging
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Appendix F: Three Phase Commercial Briquetting Machine