8/8/2018

Group Members:
1) Shaikh Ali Niaz
2) Masood Mehmood Khokhar
 Table of Content

1. Introduction ----------------------------------------------------------------------------------------------------------- 01

2. Goals and Objectives ----------------------------------------------------------------------------------------------- 02

3. People involved in the business and their roles -------------------------------------------------------------- 03

4. Executive Summary ------------------------------------------------------------------------------------------------- 04

5. Financial Plan --------------------------------------------------------------------------------------------------------- 05

6. Marketing Plan ------------------------------------------------------------------------------------------------------- 07

7. Business Expansion -------------------------------------------------------------------------------------------------- 08

8. Conclusion ------------------------------------------------------------------------------------------------------------- 09
 Introduction

REMAKE is one of the largest recycling company of Pakistan that manages two waste transfer stations
which take in all waste products, separates recyclable material from waste product and produce new
material from recycled product. Additionally, REMAKE delivers a wide variety of Waste Management
solutions to commercial and residential areas throughout the country. Whether we're making sure rubbish
is cleared from the streets, integrating waste disposal with novel ideas or keeping businesses in line with
waste regulations, the environment is at the heart of everything we do.

REMAKE collecting refuse from different parts of Karachi. Currently we provides services in four major
cities of Pakistan that includes Karachi, Lahore, Rawalpindi and Islamabad.

Every day, over 2 million residents and 12,000 business customers will benefit from our knowledge and
experience in managing waste. With experts and specialists in waste management, we are well equipped
to assist and advise our customers in all aspects of recycling and waste management. Our services
include: recycling, composting, business waste, residential waste, landfill operations.

We operate collection services in every type of environment from large urban to remote rural areas. At
REMAKE, we collect all types of refuse, using a variety of containers (bins) and refuse collection vehicles
(RCVs). This waste is taken for the safe disposal to the landfill site.
 Goals and Objective

Mission
REMAKE is a manufacturing company dedicated to converting waste materials into commercially viable
products, utilizing environmentally friendly recycling and manufacturing methods. We intend to make
enough profit to generate a significant return for our investors and to finance continued growth and
continued development in quality products. We will also maintain a friendly, fair, and creative work
environment, which respects diversity, new ideas and hard work.

Objectives
 To ensure that recycling is sustainable in Pakistan

 To investigate options for processing and value adding to recycled product

 To establish and maintain a profitable recycling program on a permanent basis in those

geographical areas as determined by the Board of Directors

 To raise personal and public awareness of environmental issues, including the benefit of
reducing, re-using and recycling of materials that would otherwise be sent to landfill sites
 Proposed Ownership and Management Plan

People involved and their roles

The ownership of the company will not reside purely with the proposed recycling company to be formed,
but also with the municipality. Although only preliminary discussions have been had with councilors, at
this stage it is envisaged that their involvement is critical to the project. The company should be run by a
board of trustees which will include members of the recycling company as well as municipal officials and
councilors. The diagram below shows the proposed management structure:

Board of trustees:
Managing Director, Drivers, workers, clerks,
Site manager
Muncicipal Officials and labourers
Councilors

Role: Day to day

management, Role: Production
Role: day to day
appointment, financial oversight, sales,
operations
management and supervision
contractual agreement

Human resource requirements

The recycling company members could be employees, but other people may have to be brought in as
laborers to fulfil certain tasks. The list of possible jobs and the number of employees will be as follows:

JOB Title Number of People

Managing Director 01
Dump Site Manager 01
LDV Driver 01
Forklift Driver 01
Tractor Driver 01
Administrative Clerk 01
Sorters 10
General Labor/Cleaner 02
Total Human Resources 18
 Executive Summary

The growing utilization of plastics in industrial and consumer applications, combined with increased
consumer awareness surrounding solid waste recycling, has led to an increased demand for recycled
plastic resins and products. One of the fastest growing types of collected plastic materials for recycling is
polyethylene terephthalate ("PET") from post-consumer beverage and water bottles. REMAKE will
capitalize on the opportunities in the recycled resin and packaging markets through two main divisions: a
Recycling Division and a Packaging Division.

The Company will create a PET cleaning and refining plant located in the Karachi, Pakistan. Its initial
capacity will be 46 million pounds, and it will utilize post-consumer bottle feed stock presently collected
in Karachi, Lahore and Islamabad, which collect over 200 million dollars per year. The Company will be
vertically integrated, and use almost all of its recycled material in its Packaging Division. Any surplus
materials (clean flake) produced will be sold to outside companies. The extruded sheet may then be sold
to manufacturers, who will thermoform it into high-visibility packaging or use it in other high value added
manufacturing operations. The strapping will be sold to companies who ship large packages or pallets,
such as the lumber milling industry. The Company currently has commitments available from customers
to purchase all of the product produced.
 Operational Plan

The plan created has been developed by interviewing the current owner of REMAKE recycling and from
looking at successful recycling operations countrywide.

Two sorting centers are proposed for recycling general refuse. The first would be started with this funding
and the second is proposed to come from natural expansion.

It is proposed that a sorting center be created at the existing municipal dump site, where the general
refuse will be separated into different streams. This site will consist of a dumping platform where the
municipal trucks will dump the general refuse. The refuse will be dumped into a bag breaking area where
bags will be broken open to allow contents to move onto a conveyor belt, where pickers will remove
recyclable items into bins. These bins will then be removed by a forklift and the recyclable products will
be taken to different areas where they will be packaged or processed for sale to agents or other buyers.

Two sites are being proposed: the first at the dump, as described above, and the second located on the
east area of Karachi. This second site will not form part of this proposal but is included here so as to
develop understanding of an expansion strategy. This second site will function as a transfer waste and
sorting station. Removal of the recycled material from the general refuse will be done here by waste
pickers and then as far as possible, only the non-recyclable products will be taken to the dump by the
municipality. The rest will be packed for transportation to agents or buyers.

Infrastructure required for operation

The following infrastructure, machinery or equipment will be required to undertake such an operation:

1. One light delivery vehicle (purchased by vehicle finance)

2. One conveyor belt
3. Two or three balers (two could be rented from agent as happens currently)
4. One forklift
5. One tractor or front end loader
6. One large tractor trailer
7. One shed
8. One office
9. One comprehensive set of tools
10. One computer

Non-infrastructural requirements
The following list contains various activities or administrative tasks that must be undertaken to get such
an operation running.

1. Business training for recycling company management

2. Computer training for one or more employees
3. Extensive consultation with the municipality on the private-public partnership approach
4. Investigations and site visits of similar recycling and composting operations in other parts of the
country
5. Community involvement in recycling
6. Contacting markets and development of agreements with buyers
 Products

Many different products are recycled in Pakistan and around the world, some of which are already being
recycled by REMAKE. Not all recycling is, however, financially viable. The list below consists of the
materials currently recycled by REMAKE as well as other items that could be recycled should this business
plan be implemented.

Product Price
Paper Rs: 7000 / ton
Cardboard Rs: 3600 / ton
PET Bottles Rs: 5500 / ton
Plastic Packaging Rs: 2000 / ton
Tins Rs: 1700 per thousand tons
 Financial Plan

Capital expenses required

The capital expenses have been estimated according to the current recycling operations assets as well as
projecting requirements for the sorting operation on the dump site. The assumptions are that the
equipment will have to be purchased from scratch, although they may be second hand, and that the
balers will not be purchased, but will be hired in a similar fashion to the current recycling operation. It is
also assumed that a light delivery vehicle will be purchased through vehicle finance and that this loan will
be on a monthly basis. The purchase value of these items has been estimated and may vary, most of the
machinery would be sought second hand as the prices of many of these items new would exceed the
projects capability for repayment.

Item Cost
Conveyor belt + associated construction Rs: 5,000,000
1 forklift Rs: 3,500,000
1 tractor or front end loader Rs: 2,200,000
1 tractor trailer Rs: 2,500,000
1 shed Rs: 50,000
Office construction Rs: 500,000
1 comprehensive set of tools Rs: 20,000
Total Rs: 13,770,000

Monthly income
The expected monthly income has been calculated assuming that the use of the dump site as a sorting
center is possible and that this will increase sales by 50%. It is also assumed that previously non-recycled
materials such as tins, will be feasible to recycle and that this will contribute to income without incurring
excessive cost. It is also assumed that the municipality will contribute an amount of money, possibly for
the first 5 years towards the business sustainability of approximately R5 000 per month or R 60 000/
annum.

Item Amount
Paper and Card Board Sales Rs: 700,000
Tin Sales Rs: 300,000
Plastic Sales Rs: 900,000
Total Monthly Income Rs: 1,900,000

Monthly Running Costs

Item Cost
Managing Director Rs: 100,000
Site Manager Rs: 75,000
3 Drivers Rs: 36,000
 Admin. Clerk/Bookkeeper Rs: 12,000
12 General Labor Rs: 120,000
Fuel Rs: 10,000
Maintenance for all vehicles Rs: 5,000
Insurance Rs: 2500
Security Rs: 20,000
Rent and utilities Rs: 50,000
Total Monthly Expenses Rs: 425,500

Funding
The funding for the project would be could be sought from the Department of Trade and Industry or
ECDC or other donors related to job creation and development, on condition that the ultimate owners or
shareholders of the enterprise are previously disadvantaged persons. The funding would be repaid
monthly from production, failure to do this would jeopardize the sustainability of the project. The
municipality could potentially source funding for the municipal involvement for example preparations,
training, public participation, workshops and where necessary feasibility studies. The municipality should
however regard this venture as an external service provider and as such the recycling company should be
paid a fee for the services. Ultimately this fee should be reduced as time passes and once sustainability of
the recycling business is established.

The funding that should be sought for this venture could be done in a number of ways:

1. The potential beneficiaries could bring Rs 800 to Rs 100,000 to the business and thus
approximately Rs 340,000 would be needed.
2. The potential beneficiaries would bring nothing initially but ultimately as the project proceeds
they would be required to bring Rs 100,000 or else face the possibility that they do not get equity
The second option is preferred due the fact that the beneficiaries could then come from
impoverished backgrounds and will n0ot be given equity but will be required to raise finance of
about Rs 100,000 amongst all beneficiaries before the end of the project.

Sourcing
In excess of 200,000,000 pounds of post-consumer PET beverage bottles are collected and available as
feed stock for manufacturers who can re-process this material into commercial products. The Company
has excellent relations with the firms and associations that collect and distribute these materials and has
been assured that its requirements will be available for the foreseeable future.
 Marketing Plan and Budget

Marketing objective of REMAKE is to achieve the. As they are competing with others, yet being top of the
market REMAKE is just need a reminder to their customers that they are still in the market that is why
they will use the medium of Billboards as much as they can.

Media Strategy of REMAKE is to create a reminder to their customers for their sales and loyalty. The
Budget is 60 Million for their marketing campaign.

 They advertise by using different mediums of media like, TVC’s, Billboards and
Newspapers etc.
 They also always participate in different CSR(Corporate Social Responsible) activities
Following are the mediums used for their campaign:

 TVCs
 OOH
 Print
 Radio
 Cinema and Shopping Malls
 And Digital Media

Rational for selecting Media Classes

Above mediums were mentioned, selecting these mediums had a very particular and absolute reason.

Medium Amount %

Cinema Rs: 1,994,000 3%

Radio Rs: 2,009,022 3%

Television Rs: 40,602,450 68%

Print Rs: 4,020,000 7%

OOH Rs: 11,000,375 19%

Total Rs: 60,000,472 100%

 Mediums
19% 3%
3%
7%

68%

Cinema Radio TV Print OOH

Digital Media or Social Media

 REMAKE is playing an active role on social media like Facebook, Twitter and Instagram

 They update their pages according to their new collection

 Also visible on You Tube, Pinterest and Vimeo

 Business Expansion

Taking action to create new markets or expand existing markets with the help different strategies are as
follow;

• Stimulating demand for recyclable materials and recycled content products

• Fostering businesses that manufacture and market recycled-content products

• Promote need to develop, transfer and apply technologies to increase use of recycled
materials manufacturing sector

• Fosters development of supply infrastructure that is capable of providing industry with

clean, readily usable and available raw materials
 Conclusion

We must communicate one message if people are to understand the seriousness of the problem.
Everyone should understand the subject thoroughly so that the only excuse can be a lack of interest. The
problem of contamination of recycling bins must be overcome.

Research is of vital importance and must continue. For example, the recycling of films which are
laminates of different plastics must continue to be investigated.

Together we must reduce, reuse and recycle. We can reduce by purchasing items with the least amount
of packaging and buying in bulk when appropriate. We can reuse by avoiding disposable items. Finally we
can recycle by using community recycling programs and purchasing products made from recycled
materials.

Never before has there been a time when environmental issues such as recycling have been more
relevant. We must stop refusing to look past today.