PLASTIC RECYCLING
FETUGA ADEYINKA 3rd NOVEMBER ,2010
OUTLINE INTRODUCTION RECYCLING? VALUE PROPOSITION BENEFITS OF PLASTIC RECYCLING PROCESSES OF PLASTIC RECYCLING SOURCING PRODUCTS/SERVICE OFFERING TARGET MARKET COMPETITORS BUSINESS STRATEGY FINANCIAL IMPLICATIONS CONCLUSION
INTRODUCTIONWaste management refers to the conversion of
waste materials to products of value
Waste management ,top priority in Lagos
The average Nigerian is said to generate about 0.5 kg of solid wastes per day
Emerging market in Nigeria
RECYCLING?Recycling involves processing used
materials into new products to prevent waste of potentially useful materials
An estimate of 13 billion plastics are disposed annually
On average, every household uses 500 plastic bottles each year of which just 130 are recycled
RECYCLING?...20 times more plastic are produced and used
today than we did 50 years ago.
The world's annual consumption of plastics increased from 5 million tons in the 1950s to nearly 100 million tons today.
7% of the average household dustbin are plastics
An estimate of over 10,000metric tones of waste is generated daily in Lagos metropolis
VALUE PROPOSITION
To reduce the environmental hazards of pollution(land filling) associated with disposal of plastics
To manage waste in an environmentally responsible way while projecting CSR image
BENEFITS OF PLASTIC RECYCLING
Conserves Energy and Natural Resources Saves Landfill Space Savings on disposal costSocio-economic sustainabilityEnvironmental sustainabilityReduces gas emissions(Co2)Generation of electricity
PROCESSES OF PLASTIC RECYCLING
Collection of bottlesSorting of bottlesGrindingWashingDryingPelleting
PLANT
SOURCINGPlastics can be sourced from:AirportsEateries Hotels Industrial waste Merchant traders
PRODUCTS/SERVICE OFFERING
Pellets
TARGET MARKET
FMCG CompaniesBottling companiesManufacturers of PVC pipes
COMPETITORSRichbol Environmental Services Ltd
Almas Company
BUSINESS STRATEGYStrategic Alliance Recycling Of Used Plastics
Ltd(RECOUP),UKPallman pulverizers Co Inc., USA
ValuPlastic e proposition
Rewarding citizens for providing used plastics
REVENUE MODEL
N ‘000
COST OF RENTING A FACTORY(2000 sqm @ 50,000)
100,000
COST OF PLANTS FOR PROCESSING PLASTICS 510,000
COST OF VEHICLES 315,000
TOTAL COST 925,000
REVENUE(N75,000 per ton)23,000 tons/yr
1,725,000
Gross Income 800,000
FINANCIAL PROJECTIONS
Assume 3% increment/yr(Income) Assume 5% increment/yr(Cost) Total payment of loan @ end of second year
LOAN (N’000) YEAR
GROSS INCOME (N’000)
OVERHEAD(N’000)
COST OF CAPITAL (N’000)
REPAYMENT (N’000)
NET INCOME (N’000)
1,000,000 1 800,000 50,000 240,000 500,000 10,000
2 848,720 55,125 120,000 500,000 173,595
3 874,181.6 57,881 - - 816,300.6
4 900,407 60,775 - - 839,632
5 927,419.3 63,814 - - 863,605.3
CONCLUSION The time has come to take advantage of
plastic recycling to generate immense financial value for our prestigious organization.
THANK YOU FOR LISTENING
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