PRIN. L. N.

WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT &

RESEARCH, BENGALURU

SUMMER INTERNSHIP PROJECT REPORT

ON

OPERATIONAL ACTIVITIES AND PROCESSES

PERFORMED AT HASIRUDALA INNOVATIONS PVT LTD (BANGALORE)

BY

SUDEEP PALEKAR

PGDM 2015 17: TRIMESTER IV

SPECIALISATION: FINANCE
ROLL NO: 37
 Table of Contents

Sr.no Content Page No

1 Glossary 3
2 Executive Summary 4
3 Part A 5
4 Intro to Waste Management 6
5 Scenario in India 7
6 Swach Bharat Abhiyan 8
7 About Hasirudala Innovations Pvt Ltd 9
8 Business Model of Hasirudala Innovations 10
9 Hierarchical Structure 13
10 Part B 14
11 Objective & Scope of Study 15
11 Pricing Slab 17
13 Roles & Responsibilities of Field Supervisor 18
14 Awaaz de 19
15 Financial Processes 20
16 Audit System 22
17 QR Code System 27
18 Porters Five Forces 28
19 Bibliography 30

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Glossary

TWM Total Waste Management

VU Van Unit

FPO For Profit Organization

WW Wet Waste

DW Dry Waste

RW Reject Waste

BBMP Bruhat Bengaluru Mahanagar Palike

BBHA Bruhat Bengaluru Hoteliers Association

BEP Break Even Points

ROI Return on Investment

CPA Cost per Acquisition

LTV Customer Lifetime Value

Cap Ex Capital Expenditures

RE Revenue Expenditures

NHAI National Highways Authority of India

BHU Banaras Hindu University

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Executive Summary

The project is a qualitative study of Waste Management sector in Bengaluru. The project

comprised of understanding the sector and Financial feasibility. It was performed with the

company as mentioned in the scope part of the report.

Firstly, it covers Waste Management Scenario in Bengaluru City and how all the stakeholders

are playing pivotal roles to bring in reforming changes. The alarming Quantity of Waste is a

menace to the society and needs to be treated responsibly. Also, the life of waste-pickers

needs to be improved upon. The trivial social stigma attached to the profession is highly

unacceptable in a free and a Vibrant Democracy like our Country..

Further, my work within the organization spanned multi-levels and was highly inter-

departmental in nature. That is the essence of working in a start up where efficiency and

alignment is accorded the highest priority due to its nascent stage. Many initiatives were

taken to cut down time on mundane jobs and bring in accountability. This helped a lot as

structuring took place and the Organization was able to achieve much more than the sum of

all its elements.

Additionally The Porters 5 Forces Model study has been performed on the players i.e.

companies undertaking the construction of such projects.

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 PART A

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Introduction to Waste Management

Waste management is all the activities and actions required to manage waste from its

inception to its final disposal. This includes among other things, collection, transport,

treatment and disposal of waste together with monitoring and regulation. It also encompasses

the legal and regulatory framework that relates to waste management encompassing guidance

on recycling etc.

The term usually relates to all kinds of waste, whether generated during the extraction of raw

materials, the processing of raw materials into intermediate and final products, the

consumption of final products, or other human activities, including municipal (residential,

institutional, commercial), agricultural, and social (health care, household hazardous wastes,

sewage sludge).Waste management is intended to reduce adverse effects of waste on health,

the environment or aesthetics.

There are a number of concepts about waste management which vary in their usage between

countries or regions.

1) Waste hierarchy

2) Life-cycle of a Product

3) Resource efficiency

4) Polluter pays principle

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SCENARIO IN INDIA

In India, The National Environment Policy,2006 while suggesting measures for controlling

various forms of environmental pollution lays emphasis on the need for collection and

treatment systems for recycling waste and devising measures for environmentally safe

disposal of Residues.

Waste Management is goverened by various sub-ordinate legislations and the Minstry of

Environment, Forest & Climate Change, Governement of India(MoEF) in conjunct with

Sate Pollution Control Boards of Different states(SPCB)

The various rules governing waste Management in India and issues faced in their compliance

1)Regulatory Regime for Waste Management

1.1) Bio-Medical Waste-1998

1.2) The Batteries-2001

1.3) The E-Waste-2011

1.4) The Plastic Waste-2011

1.5) The Hazardous Wastes-2008

1.6) Industrial Waste

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 SWACH BHARAT ABHIYAN

It is National campaign by Government of India, covering 4041 statutory cities and towns,

to clean the streets, roads Infrastructure of the country.

The campaign was officially launched on 2 October 2014 at New Delhi, by Prime Minsiter

Narendra Modi. It aims to eliminate open defecation by 2019.

The Corporate Sector is also actively participating in the Mission. As of May 2015, 14

companies including top notch ones like TCS, Mahindra Group, & Rotary International

have pledged to construct 3195 new toilets.

The progress and success of the campaign can be gauged from the fact that between April

2014 and May 2015, 31.85 Lakh toilets were built in total. As of august 2015, 80 lakh

toilets have been construcuted.

The Government of India may use its DIGITAL INDIA Project in Conjunction with the

Swach Bharat Abhiyan to have Solar power trash cans which send alerts to Sanitation crew

once they are full.

With so much emphasis on a Cleaner and Hygeinic India, Hasirudala is actively playing a

Major Role in this Campaign.

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About Hasirudala Innovations Pvt Ltd

Hasirudala Innovations Pvt Ltd (the Company or Hasirudala) is founded by Nalini Shekar

(Founder & Director) and Shekar Prabhakar (Co-Founder & Managing Director).

The Company is a For Profit Organization (FPO) incorporated in 2013. It is one of the very

few companies classified as an Total Waste Management Company. Recently in 2016, it has

been awarded Karnataka State Environment Award.It has its office in Bengaluru and slowly

expanding its services to Nelamangala and Mysuru.The Company is not listed on any of the

stock exchanges in India.

Its services include 1) Total Waste Management. 2) Event Waste Management. 3) Urban

Gardening.

Some of its Major Highlights include

More than 7500 waste pickers have sense of occupational identity.

More than 13000 households in Bengaluru accessing waste management services

provided by erstwhile waste pickers and other informal waste workers

Insurance and banking facilities extended to waste pickers and informal waste workers

500 new jobs created for waste pickers and informal waste workers

Daily more than 50 tons of waste sent for either composting or recycling

Children of waste pickers and other informal waste workers accessing scholarships and
educational loans for good quality education

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Business Model of Hasirudala Innovations

Hasirudala
Innovations
Pvt Ltd

Wet Dry Reject

Waste Waste Waste

VAN
UNIT

WASTE IN DRIVER
PICKER CHARGE

As evident from the above Hierarchical Structure, Hasirudala follows a highly decentralized

norm in its operations. This enables to have quick decision making authority and a sense of

empowerment to all the stakeholdiers.

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HASIRUDALA mainly operates in Total Waste Management which comprises of

1) WET WASTE

This category comprises of wet waste mainly originating from Households and Eateries

( Restaurants)

2) DRY WASTE

This category primarily consists of bags, plastic, paper..etc.

3) REJECT WASTE

This category includes sanitary waste, napkins...etc.

Hasirudala has divided the Bengaluru City into wards just like the Municipal Council for

Declassification. As per Records, there are 196 such wards in the city out of which

Hasirudala operates in 13 of them (June-16). This gives a Reach of around 6-7% indicating a

huge potential to grow.

Every Ward has a dedicated Van Unit which specifically caters only to that ward. This

ensures smooth flow and quick response time. The revenue generators for the Business lie in

the Customers which Hasirudala serves.

Customers include a) Residential Apartments b) Restaurants and Food Chains c)

Commercial Apartments(yet to be served).

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 Till June 2016 reports, Hasirudala engaged in contract agreements with 139 apartments

in the city serving a huge base of 22300 doors. Considering its tapped potential(6-7%), it

surely has a way long ahead to reach and satisfy the citizens.

Every customer is negotiated into a contract agreement which gives the business a stable and

a predictive measure of its forthcoming operations. Pricing is done on slabs which are based

on the amount of waste generated by each bulk generator.

This way every ward ensures revenue from its customers on a monthly basis. Addition to this,

the new customers are seamlessly added into mainstream accounting for further revenue

generation.

The Van units are in charge of the daily operations at Hasirudala. They operate as a sub

franchise who are responsible for the pick-up, segregation, containment, transportation and

disposal of the respective waste which they collect. At the end of the day, all the Van Units

are assembled at a common place to aggregate the city waste into a huge Tipper preferably of

around 18-20 tonne capacity. This tipper is then sent to Noble Exchange bio gas plant where

the wet waste is processed to create Bio-Fuel. This is packaged in a cylinder and shipped

accordingly to their customers down the chain.

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HIERARCHICHAL STRUCTURE

Mrs Nalini Shekar Mr. Shekar Prabhakar

Founder Director Co Founder &
Ms. Lakshmi Managing Director
Head-Sales
Mr. Marwan Abubaker
Director-Operations
Mrs. Chaithra
Mr. Swaminathan
Database &
Mr. Aniket Bhalerao Accounts
Records
Head-Operations

Mr. Maregowda Mr. Girish Mr Shekar Mr. Shankar

Supervisor Supervisor Supervisor Supervisor

Van Unit Van Unit Van Unit Van Unit

Repon Aqmal Chandru Loatfer

At current stage, the hierarchical structure is more oriented towards Operations side as the

Company is in its nascent growth stage and dedicated to get its processes right.

Mr.Marwan Abubaker handles the Operations and also has Mr. Aniket Bhalerao to assist

him in his daily operational activities. Mr.Aniket has divided the City Operations into 4

main supervisors namely Mr. Maregowda, Mr. Girish, Mr. Shekar and Mr. Shankar.

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 PART B

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Objective & Scope of Study

The project study is on Operational Activities and Processes in Waste Management in India.

The project has been performed with Hasirudala Innovations Pvt Ltd (the Company).

The study was undertaken to understand and learn the following:

Business Model of Waste Management Services

Roles of Stakeholders

Aligning the Task Force with processes

Structural Organization

The project involved Operational processes for the Company. As it was a start-up, there

were many shortcomings in the Operational Department of the Organization which would

have been eradicated as the Business grew and matured with time. Collation of Relevant

Data, optimization of Current Resources, creating Processes to enhance accountability,

using Disruptive Technology to aid tedious work and bring efficiency were of the many

tasks which were allotted and carried out successfully. As regards to Financial Data,

Market Research and Future Plans, due to confidentiality of data collated the same have

not been incorporated in this report.

Further, the study report is restricted only to the understanding of project. The nuances of

base case taken for understanding have not been incorporated due to privacy of

information.

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Since, this project was mainly based on all the operational activites in the company the nature

of work conducted was highly Non-Analytical in Nature.

The Scope of the project was assigned to my Industry and did not touch other Industries at

any point of time.

The tasks which were assigned and completed during the course of the Project were

1) Pricing Slab

2) Roles & Responsibilities of Field Supervisor

3) Awaaz de

4) Financial Processes

5) Audit System

6) QR Code System

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Pricing Slab

Wet waste/day Price per month (Rs.)

0 to 10 kgs 1500
11 to 25 kgs 3750
26 to 50 kgs 7500
51 to 75 kgs 11250
76 to 100 kgs 15000
101 to 150 kgs 22500
151 to 200kgs 22875

The Pricing Plan is given in the above table.

Depending upon the waste amount generated by the Bulk Generator (Apartment/Hotel), it is

billed an amount on a Monthly basis. This is how the revenue is generated for Hasirudala.

This pricing plan forms the basis for further contract agreement with the customer.

In Future, pricing slab may is subjected to change following the economic conditions,

demand supply ratio and other factors.

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Roles & Responsibilities of a Field Supervisor

As we are aware, that Hasiru Dala operates 12 Van Units in and around Bangalore City for

Waste Pick-up. These 12 wards are further sub divided into 4 groups managed under the

supervision of Mr. M.Gowda who handles 4 other field supervisors each consisting of 3

wards.

After paying a visit to the field with Mr. Girish at Shanti Nagar, I observed the daily work

ethics of the stakeholders (Waste pickers, Van Unit, Driver, Supervisor) involved in the

activity. Some of the Roles & Responsibilities which I can suggest are

Follow-up of the Waste Sources a day prior to collection (preparing a pick-up schedule)

Intimation to the concerned team and briefing them about the pick-up Details.

The details include the assets to be taken along for the concerned route, starting time,

availability of the team, distribution of the work.

Ensure timely attendance of the team at the site in morning.

Inspect the Sources of Waste as to whether they are complying with the rules

(segregation), weighing the waste as per the contract.

Develop an Exception Handling Mechanism to tackle unforeseen emergencies at the site.

Constant communication by the team at site to the supervisor about their progress to

ensure smooth flow within the route.

Transferring the Van Waste to the Tipper at collection point.

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AWAAZ DE

Project 1: Sending daily alerts to 60 waste-picker entrepreneurs

There will be 12 'groups' of approximately 5. Each group will have its own

unique phone line. This way, if they miss the call, they can place a missed-call back anytime

to hear the latest message.

The 60 phone numbers will need to be split according to group and uploaded

Each group will have a unique 6-day schedule of messages

At the beginning of the month, Hasirudala will need to make 6 recordings for

each group, for each day of the week

Depending on your choice, either Hasirudala will need to schedule all of the

calls for each group, or our team can do all the account management for a monthly fee.

Recording length is expected to be 30 seconds or less

Costing

Standard phone line cost is Rs. 315/mo. (3,798 annually). Since we are purchasing 12

phone lines for this project, they can discount to Rs. 250/mo/line (3,000 annually). So

total monthly cost will be just Rs. 3,000 and annual cost is Rs. 36,000. This amount will

be payable up-front.

Assuming that we push out 30-second calls every day to 60 people, 6 days per week, our

monthly airtime credits used will be approximately 1,440. They have a package for 1,500

credits for Rs. 999, so we can start out with that, and depending on results, you can

purchase large packs for more discount in future. These credits won't expire.

Account Management is optional and is billed at Rs.6000/month.

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FINANCIAL PROCESSES

Objective : To be implemented for streamlining the activities.

Points to be noted

1) Proper accountability of the Van-unit i.e. Whether they have collected Waste from the

household and at what time.

2) Create a 2-way system for accountability. I.e. One from Hasirudala side and the other from

the customer side preferably the guard. The guard will report the Hasirudala internal team

about the collection status. I.e. A) Time of collection. B) Amount Collected.

3) The van unit supervisor submits a daily report of the collection to the internal team/area

supervisor via mail.

4) A con census shall be reached by giving adequate weight age to both results.

5) Track this data for a month per van unit wise and estimate a demand for per ward for the

coming months.

6) Track the financial expenses of per van unit in previous months

7) Create a virtual petty cash account authorized jointly by maregowda and the van unit

supervisor for daily expenses and credit it with the average weekly expenditure amount.

8) Credit the account with 1.5 X Weekly Expenditure

9) Replenishment shall be subjected to issuing of proper receipts against the withdrawal on a

particular day of the week..(preferably a Saturday).

10) This will ensure a smooth cash flow within the organization.

11) The contractual Payment fees should be directly linked to the amount of waste collected

rather than the number of households.

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12) This is essential because our source of revenue is related to the amount in kilograms and

not in number of households.

13) The incentive for the van unit to go that extra mile should be a one-time bonus per new

household waste collected.

14) The payment to van units shall be consisting of a) Base fee b) Incentivization

Type Base Fee Incentivization

Sr.No Composition Composition
1 Diesel Cost Timely Pick-up
2 Maintenance No of New Households
3 Labor expense Daily reporting of pick-up

15) For any additional out of the contract work performed by the Van-unit in case of

unforeseen circumstances, the payment shall be deducted from the petty-cash account. If the

account is nearing exhaustion then it should be immediately notified to Maregowda on the

Same Day.

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 AUDIT SYSTEM

Objective: Review of Hasirudalas usage of resources to ensure those resources are being

utilized as efficiently and effectively as possible to accomplish the missions and goals of

Hasirudala.

Hasirudala is a largely peoples organization which lays emphasis on overall development of

the workforce in all walks of life in the community.

Hence, people are the centric inflexion through which all the activities and policies of

Hasirudala are created and implemented. However, during the stint of my internship there

were a few key areas which were analyzed that led to fulfilling of some gaps. Also, many

positives emerged which is a good indication of the current policies and systems in place.

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 Let us outline a few findings

Operational Efficiency

Timely Service

Creation of Awareness within the Society

Systems and Policies

Briefly commenting on the above findings, let us take a look at the below chart and

understand the significance of the same.

Sr.N Finding Risk Recommendation

o.

1 No Common Platform Resulting in unverified Data Implement a System

Driven Data Directory thus taking longer to take Dashboard

decisions

2 Lack of Standardization Van-Unit owners can have a Create a Standardized

of Contracts to Van Units complexity issue hampering Contract

their dedication

3 Non-Punctuality of the Service Reputation in line Train the service

service personnel which cannot be afforded to be personnel to be timely on

in risk as we are still a growing job through regular

company sessions or added

incentives

4 Accessibility of people in In case of an emergency, it can Same as No.3

service be disastrous in near future

considering the volume of

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 work undertaken everyday

5 Reporting Structure Cannot gauge the operational Create a daily reporting

Missing reach of the organization which structure outlining all the

gives us lack of real time and stakeholders involved.

ground data to work with.

The above chart is an overall audit as to how the gaps can be filled in my opinion. These

tasks need to be given adequate time frame for implementation so it is approved and accepted

whole-heartedly within the organization.

EXAMPLE: Consider a Van Unit in operation (Girish) at Shanti Nagar Ward.

Girish should be responsible for the timely initiation of the unit services. He should make

sure that all the employees of his van unit report to work on time every day with all the

necessary Accessories (including mobile phones in working conditions).

1) Girish should be responsible for the timely initiation of the unit services. He should make

sure that all the employees of his van unit report to work on time every day with all the

necessary Accessories (including mobile phones in working conditions).

2) The Agenda for the Day should be followed rigorously as per the plan. I.e. Route Map and

time.

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3) For every Hotel serviced, the details should be recorded in electronic format by the

necessary credentials (I.e. Time of Pick-up, Weight of waste).

4) A standard template needs to be created for each van unit in service. This will make it

easier to just fill in the details (open to modification and improvement).

5) Pass over this data on a daily basis via email to his supervisor which by the end of the

chain reaches a common data centric point as mentioned in Finding 1 & 5.

6) It is imperative to weigh the waste periodically as to assess if the customer is falling in the

right bracket.

7) Also, check the daily kilometers travelled by the van unit. In the reporting template, fill in

columns start & end to calculate daily distance travelled. This will help in creating a

standardized pay structure for the Van units (Finding 2)

8) Create a feedback mechanism to assess the services of our working personnel through the

customers. The best way is through a template which can measure the performances of our

personnel on all counts. A quantitative methodology would be more appropriate as it will

reflect more of an absolute feedback.

9) Create a feedback form outlining the major areas and let the Van unit owner (Girish)

distribute it to each customer turn by turn on a given day.

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10) These forms need to be collected on the next visit day and handed over to common data

centric authorized person (say Chaithra) for further course of action.

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QR CODE SYSTEM

This is the use of Disruptive Technology to enhance the efficiency of everyday processes.

One of the major challenges today facing Hasirudala is authentication of the amount of waste

collected from every apartment.

Benefits

Time tracking of the services. Credentials collected include

a) Amount of waste

b) Time of Pick up

c) Automatic record retrieval system for past pick ups.

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Porters Five Forces

ENTRY
BARRIERS
MEDIUM

RIVALRY
LOW CUSTOMERS
SUPPLIERS
LOW
MEDIUM

SUBSTITUTES
LOW

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Let us analyze the players, in context of Michael Porters 5 Forces Model

1. The inter player rivalry is low presently. Due to no Competition, it virtually enjoys a

monopolistic position in the Market.

2. Entry Barriers It is a very low capital cost Business to start. Hence, the barriers are very

few to enter and it is very encouraging.

3. Suppliers The suppliers for players are majorly the

a) Households

b) Restaurants

These constitute the bulk generators of waste which act as a supplier to Hasirudala.

4. We understand that there is no substitute to this sector. One cannot replace waste. The

only substitute is the manual composting of waste at individual household which can stop

the supply of waste.

5. Customers for this Business are the the Restaurants, Commercial and Residential

Apartments.

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Bibliography

http://www.newindianexpress.com/cities/bengaluru/Waste-Disposal-Unit-Coming-

Up/2014/03/13/article2106580.ece1

https://www.cleverism.com/ultimate-guide-unit-economics

https://www.hasirudalainnovations.com

http://hasirudala.in

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