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