E-recycling-issues-and-solutions

E-WASTE RE-CYCLING – BUSINESS OPPORTUNITIES

E-waste typically includes discarded computers and components, cathode ray tubes (CRTs), printed circuit boards (PCB), mobile phones, headphones, wires & cables, and white household goods such as liquid crystal display (LCD), plasma TVs, ACs, refrigerators etc.

As per Industry body ASSOCHAM, India’s e-waste generation is likely to increase by nearly three times, from the existing 18 lakh MT per annum to 52 lakh MT per annum by 2020 at a compound annual growth rate (CAGR) of about 30%[1].

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Despite increasing number of registered recyclers/dismantlers in the country and large volume of E-waste generated, only about 5% of it is processed through formal sector. The remaining is either donated or goes to Kabadiwalas.

For example, although Hyderabad generates about 32 000 metric tonnes of E-waste annually[2] and total annual capacity of Hyderabad’s major recyclers is approximately 20,000 MT per annum (As per list of TSPCB-registered Dismantlers,) the formal sector recyclers do not get adequate waste.

The biggest e-waste recycling market in India is Delhi and approximately 30% to 40% of the e-waste in India lands there.

Process

The figure below depicts the step-by-step process for recycling e-waste.

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Current Players

The total number of registered E-waste recyclers in India is 159, whereas Hyderabad has 4[3].

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Capital Expenditure (CAPEX) for Various Options

E waste recycling chain begins with a collection centre, which can be set up for Rs. 10 lakhs. However, standalone collection centres are not encouraged to register, unless they are being set up by a recycler/refurbished or an electronic product manufacturer.  A collection centre combined with a dismantling unit can be set up for around Rs. 40 lakhs.  In India, recycling is restricted to separation of Metal and Non-metal and granulation, as the technology for extraction of precious metal is not economical.

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Regulatory Requirements

The industry is governed by e waste rules which specify the approvals and infrastructure requirements. The approvals need to be obtained from State pollution control body.

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The e waste sector has grown at a slow pace over the last five years, largely due to lack of awareness about e waste rules,  absence of strict guidelines for disposal of e waste and challenges from the informal sector recyclers who are able to offer a better price for the waste. However, the regulations around e waste are expected to tighten and would bring unorganised sector into mainstream.

Opportunities for a New Enterprise

While opportunities for e waste recycling are only expected to increase in future, profitability would depend on the value addition done by the enterprise.  Therefore, aspiring e waste companies would also need to build skill sets in e waste segregation and in identifying reusable waste. We believe that

  1. Collection centre as such will remain an un profitable proposition, as just collecting the waste does not provide enough value addition/margins
  2. Dismantling can be a profitable option if you are able to establish a network of waste collection centres (perhaps from the unorganised sector) and develop skill sets to identify reusable waste
  3. Setting up a refurbishing centre, where salvaged computers/phones can be repaired using new or old components should also be attractive.
  4. Recyclers would need a large network of collection centres or need to import waste to ensure capacity utilisation.

How we can help you?

We can help you set up E waste recycling unit through a number of services including

  • Market viability assessment
  • Technical consultation and
  • Project execution support.

Reach Us

Write to us: bchhatre@finetrain.comadmin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

 

[1]Source: The Hindu – article dated at June, 2016

[2] Source: ASSOCHAM-Frost & Sullivan study, April, 2016

[3]Source: List of Registered E-Waste Dismantlers/Recyclers in the country (as on 29-12-2016)

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Fruits & Spices Processing Industry: Opportunities In AP & Telangana

The fruits and spices processing industry in Andhra Pradesh and Telangana is poised for a significant growth.  Bountiful availability of raw material along with positive policy environment that will build supply chain infrastructure is likely to create many new enterprises. This blog discusses the new opportunities, policy initiatives and funding availability for the industry.

What are the opportunities?

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Enabling environment 
Pic: 1 –  Food Processing Industry: Government Policy

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Note: Enclosed is a link to the Food Processing Policy of AP
Creation of Infrastructure for Food Processing Industry

GOI as part of its Mega food park scheme has sanctioned four food processing parks in Telangana. The details are as under

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Andhra Pradesh has SRINI Food Park in Chittoor, which is operational. Further, the state government has proposed to set up 8 mega food parks. Five of these parks will be located in the coastal districts of Srikakulam, Vizianagaram, Visakhapatnam and East Godavari. Three more parks are proposed in the Rayalaseema in Chittoor, Kurnool and Anantapur.

Funding for Food Processing Industry

A fund of Rs. 2000 crore has been created under NABARD to fund the term loan for food processing industry. The fund is available for food parks as well as units that are located in food parks. Key features of loan are as under:

  1. The loan is available to food processing units located in designated food parks[1]
  2. The list of activities that would be funded include fruits/vegetable/dairy/meat/aqua/herbs/nutraceutical/food flavours, colours, detailed list is available in the link here
  3. Maximum 75% of the project cost would be funded through term loan. Project cost would include site development/machinery/consultancy charges/capitalised working capital/pre-operative interest etc. If the individual is purchasing land (not leasing), 10 % of the land cost would also be included
  4. Term loan would be for a period of 7 years, The rate of interest would be linked to the prevailing interest
  5. Collateral would be required
How can we help you:

If you are interested in setting up a food processing industry, there is no better time than now. We at FineTrain can assist you in starting a fruit/spices processing unit. Our services include

  1. Market viability assessment
  2. Detailed project report preparation
  3. Technical support
Reach Us:

Write to us: bchhatre@finetrain.comadmin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

[1] Food parks and mega food parks promoted by Ministry of food processing, food parks/food processing industrial estates promoted by State governments, Food processing SEZ, Any other area that has related infrastructure and has been designated as food park, the MOFPI has provided a list of such entities

 

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T- PRIDE: Promoting Entrepreneurship among Scheduled Caste and Scheduled Tribes

The Telangana State Program for Rapid Incubation of Dalit Entrepreneurs (T-PRIDE) aims to develop entrepreneurship among Scheduled Caste and Scheduled Tribes. The scheme, which covers both manufacturing and service sector establishments offers a number of incentives to start a new enterprise or expand an existing business. This blog discusses key features of the scheme and its contribution to Dalit entrepreneurship.

Picture 1: Key incentives for Micro and Small enterprises under T- PRIDE

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What type of enterprises are eligible?

In order to claim incentives under T-PRIDE, an enterprise

  • Should be 100 percent owned by SC or ST entrepreneur or both together in case of a joint venture.
  • Should commence operation on or after 1st January 2015 and before 31st March 2019.
  • Can be manufacturing or a service sector unit. For manufacturing units, certain sectors are considered ineligible (list included). For service sector, the government has specified a list of industries that are eligible (list attached).
  • Can be set up anywhere in the state, manufacturing enterprises if set up under GHMC limit, should be set up in the existing industrial estates[1], service enterprises can be set up anywhere
  • Can be a new or an existing enterprises that is expanding or diversifying its business, as shown in the table below.
Picture 2:  Eligibility parameters for existing and new enterprises

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When are these incentives given?

Generally, these incentives are given as reimbursements within 6 months of starting commercial production.  However in some cases, investment subsidy can be claimed before start of commercial production, provided the bank loan has been sanctioned.

How do I arrange finance for my project?

The finance for these projects can be obtained under Stand up India scheme, a scheme that aims to increase capital availability to SC/ST enterprises. In order to read more about Stand up India, please click here.

How many units have benefited thus far?

Based on our analysis of proposals sanctioned by SLC (State level investment committee of Commissioner of Industries, Telangana) during last two years, around 1100 enterprises have obtained approvals for incentives under T-PRIDE.  As can be seen in the picture below, transport and construction sector together account for around 60 per cent of incentive claims. Others, include hospitality, hospitals, mining, and engineering. In terms of geography, Warrangal accounts for highest number of claims, followed by Nalgonda and Karimnagar.

As such, there is a need to promote formation of new enterprises in manufacturing, agri related sectors as these boost employment and lead to development of district economy.

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How can we help you?

FineTrain is an advisory firm for small businesses; we assist our clients in starting or expanding their businesses.  We offer

  1. Advisory to help you to choose suitable business opportunity and DPR preparation
  2. Technical consultation
  3. Project implementation support
Reach us:

Write to us: bchhatre@finetrain.comadmin@finetrain.com

Call us: 800 888 4932

[1] The manufacturing units established in Sanathnagar, Azamabad, Chandulal Baradari and Kattedan Industrial Estates of Hyderabad and Ranga Reddy Districts are not eligible for any incentives/concessions.

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Business Opportunity in Tamarind Processing in India

Tamarind is a popular spice and the products from Tamarind family are being used in Indian food since ages. Tamarind pulp is commonly used in all households, restaurants, roadside eateries etc in food preparations. Not just the fruit, even Tamarind seed powder is extensively used in industries such as Textile, Paper, Confectionary, Cosmetics and Pharmaceuticals.

Opportunity

India is the world’s largest producer of tamarind products, with a production of over 200 thousand tonnes[1]. Tamarind is cultivated in Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Maharashtra, Telangana, Pondicherry and Mizoram (see the picture below).

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The value of the production of tamarind in India is estimated to be around Rs.1608crs[2], exports account for over 11% of the total value. Processed tamarind is exported mainly to European and Arab countries.

Budget

The minimum budget for the plants such as Tamarind Pulp making or Tamarind Seed Powder would be around Rs. 50 Lakh including machinery cost, land cost and labour cost. The biggest challenge in this business is raw material availability and land requirements for storage of raw material. The area required to set up a processing facility would be upwards of 5000 sft.

Budget Estimation for Tamarind Processing Units

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How can we help 

We can help you start “Tamarind Processing Industry” through number services as shown below:

  1. Business viability assessment, market landscaping and expert consultation.
  2. Viability of setting up a Tamarind processing unit.
  3. Identifying most cost effective local suppliers for tamarind manufacturing unit.
  4. Connect you with the experts who can help you in setting up the tamarind processing plant.
  5. Preparing the detailed project report.
Reach Us

Write to us: bchhatre@finetrain.com, admin@finetrain.com

Call us: 800 888 4932

[1] Source: NHB, production figures are for 2014 -15.

[2] Assumed average price of tamarind is Rs. 80/kg which is then converted into tonnage price and multiplied with the total production of 200 thousand tonnes.

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Business Opportunity: Animal Feed Manufacturing

India’s animal feed industry, currently valued at around $ 15 billion[1] is expected to double in the next five years.  The feed consumption is estimated to be 21.5 million tonnes, of which cattle feed accounts for 7.5 million tonnes, aqua feed 1 million tonne and poultry feed around 13 Million tonnes.

The state of Telangana and AP contribute to a large chunk of Indian feed consumption, as can be seen in the table below. Given the large size of the industry and its growth, it presents an attractive opportunity for small and medium enterprises.

Animal feed industry in AP and Telangana

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Competitive landscape of the Industry

The industry is competitive, with international, national and regional companies vying for the market share.  The table below provides information on important players in AP and Telangana.

Animal feed companies in AP and Telangana

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Manufacturing process and budget

The feed manufacturing operations comprise four steps; raw material preparation, mixing and grinding the feed, palletisation and packaging. The plant capacity typically starts from 2-3 tonnes per hour to 15 tonnes per hour.

Animal feed manufacturing process

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An automated plant with a capacity of 3- 5 tonnes per hour can cost up to Rs. 40 lakhs. Considering the machines and raw material inventory and infrastructure required to store the raw material, the budget requirement for the unit could be up to Rs. 1 crore.

How can we Help

  • We can help you assess viability of animal feed and related opportunities through a number of services including market research, detailed viability assessment and technical consultation.
  • We also offer support in executing your ideas by connecting you with sector experts and professionals.

Reach Us

Call us @ 800 888 4932,

Write to us- bchhatre@finetrain.com

Visit us- www.finetrain.com

 

[1] As per Yes Bank report on The Indian Feed Industry – Revitalising Nutritional Security

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Budget 2017-18: Incentives For Small Businesses

A number of measures revolving around government’s key schemes of Mudra, Start-up India, Make in India and Digital India have been announced. These relate to increasing access to capital, promoting domestic manufacturing and increasing tax compliance of small businesses.  Details are enumerated below.

Increasing access to capital

  • A Dairy Processing and Infrastructure Development Fund would be set up with a corpus of Rs. 8,000 crores.
  • Lending target under Mudra scheme has been doubled to Rs. 2.44 lakh crores in 2017-18 from Rs. 1.77 lakh crores.

Clean India/digital India- Incentives for filing taxes

  • The corporate income tax rate for companies with a turnover of less than Rs. 50 crores has been brought down to 25% from 30 % earlier.
  • Corporate income tax rate for companies with a turnover of less than 2 crores: Such companies are not required to maintain books and currently 8% of their turnover is assumed to be their profit and is liable for taxes. The presumptive rate of 8% has been reduced to 6 %, for turnover received by non-cash means (Sales receipt received through bank account or other digital means).
  • Start-ups: These benefits are available to start ups registered between April 2016 to April 2019, under start-up India scheme
  • The time period for availing 3 year income tax holiday[1] by a start-up has been extended to 7 years as against 5 years earlier, thus providing start-ups a longer window to claim the benefit.
  • Also, condition of original promoter holding 51% shares of voting rights for start ups for claiming the tax deduction against carry forward losses has been relaxed. As per the new condition, original owner only needs to continue to hold a stake in the start-up.

Make in India – Incentives for manufacturing in India

  • Renewable energy: Customs duty on a number of components that go into making solar power panels /modules has been reduced.
  • LED: Excise duty on components/fixtures of LED lights has been reduced.
  • Water purifiers: Customs duty for parts of RO membrane for household filters has been brought down to facilitate domestic manufacturing of RO membrane. The custom duty on import of RO membrane has been increased.
  • Devices for cashless transactions: Customs duty concessions have been announced for import of POS reader, micro ATMS, finger print reader, Iris scanner.

For detailed information on the changes in excise and customs duty, please click here to refer the Budget Sheet 2017-18.

Conclusion

Budget incentivises small businesses to manufacture locally and to pay their taxes. These are good steps as such and would help the industry in the long run.

How can we help you?

FineTrain is an advisory firm for small businesses. We help our clients grow their businesses. We can help you analyse new business opportunities or generate leads for your existing business.

Contact us

bchhatre@finetrain.com

800 888 4932

 

[1] As per start-up India scheme, the start-ups are eligible to claim 100 per cent income tax deduction under section 80- IAC, however they are liable to pay MAT (minimum alternate tax ,paid on book profits), which can be set off in later years

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Rise of B2B E-commerce: Opportunity For Small Businesses

The competition among B2B ecommerce portals has been heating up with the entry of several new players who are looking to expand their presence across products and geographies. These portals are wooing small businesses to transact on their platforms with offers to support them with marketing, logistics and even credit. The rise of B2B ecommerce presents an interesting opportunity to small businesses, who can leverage it to enter new markets and gain more insights on their customers.

Table 1: Leading Indian B2B e-commerce platformCapture

With the advent and increasing use of e commerce platforms, some of the issues faced by small businesses in selling online have eased, as these portals provide much needed marketing and logistics support. Small businesses can harness the power e-commerce opportunity through the following strategies.Small businesses find it difficult to sell online as the competitive landscape for selling goods online is very different from offline market place, where the sale is relationship based and competition is mostly local.  As such, to sell online, the product should be searchable, able to compete with local as well as national products and should be delivered in a timely and efficient manner.

 Key strategies for Small businesses

 Document the sale process

Since sale of industrial machinery part is a consultative process, a small business owner typically spends most of his/her time consulting with the clients to customise machinery to client’s requirements. For example, a ghee machine supplier needs to understand the manufacturing process (manual or automated), raw material (milk, cream or butter), and capacity and cold storage facilities of the client before designing the machine.

Small businesses need to document the sales consultation process in detail, which can then be used to design automated systems that can accommodate different buyer requirements and provide ballpark pricing.

Enable product comparison

In order to differentiate itself among a number of products available online, the small business needs to provide detailed information on the product quality, raw material, manufacturing process and testing infrastructure available with the company. For example, the quality of a plastic product would depend the manufacturing process (injection moulding machine, extrusion machine or a hand layup process), polymer used and quality control measures adopted by the manufacturer.  Precise product description and comparison would also reduce product return, a major pain point for small businesses.

Segment your market

Small businesses must ensure that ecommerce doesn’t cannibalise their sales from existing sales channels (sales representatives and distributor channels). Therefore it’s important to segment the products into different categories depending on the business size, complexity of the product, buying cycle, discounts offered, geography, demography etc.  Thereafter, the portfolio could be clearly demarcated into segments that would be sold through both the e-commerce and traditional platforms/channels.

There is no better time to start selling industrial goods online. Small businesses should have a strategy in place to select the products to be sold through e commerce route, build capacity to meet the requirements of new customers and to choose the right ecommerce platform.

How can we help you?

FineTrain is a consulting firm for entrepreneurs, we help our clients grow their businesses. We can assist you in getting your business ready for e commerce and in planning your ecommerce strategy.

Contact us

bchhatre@finetrain.com

800 888 4932

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Business Opportunity: Become a Channel Partner for Air Cooling Systems

ICEBERG’s O-Zone Air Cooling systems are an ecofriendly alternative to Air-Conditioning Systems, ideal for Hotels, offices, retail showrooms, function halls and large houses. These are wall mounted elegant looking cooling systems which provide homogeneous cooling with 100% fresh air and save 80 – 90% of your power.

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Company Profile:

ICEBERG cooling and Freezing systems private limited (ICEBERG), specializes in manufacturing technologically advanced cooling systems for Industrial and domestic use. Its clients include   large industries such as ONGC, SAINT-GOBAIN, TFL, and IVRCL, a number of residential houses, party halls and restaurants. ICEBERG is based in Hyderabad and has been in business for over a decade.

Product Attractions:

  • Elegant looking: O-Zone air cooling systems are Wall Mounted and looks like an AC.
  • Efficient cooling: Reduces the room  temperature  by 10-15 degrees as compared to the outside temperature
  • Automated water supply: The water supply comes from the tank and stops on its own when the cooler is full.
  • Less Noise Level: System is less noisy than other coolers
  • Less Power Bill: Brings down your power bills significantly as compared to AC
  • No Inside Space Taking: System is either mounted on the wall or ceiling.
  • After Sale Service: Comes with one year warranty

Opportunity for the Channel Partner:

The channel partner can be an entrepreneur looking to start a new business as well as an existing enterprise looking to diversify their operation for extra income.

Interested entrepreneurs can reach us at:

Contact Person: Revanth Duggana

Ph: 8886666567

Email: revanth.duggana@finetrain.com

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Wearables: How to start your start up

Wearables refer to devices equipped with advance sensors and internet/mobile connectivity that can be used to monitor & track a variety of information related to our health, habits and home security.  Popular categories of fitness wearable include smart wristbands, sports watches, heart rate monitor chest straps and smart garments.

Wearables can make an increasingly positive contribution to our lives as more data are collected and analysed. Cars will be unlocked when the smart watch is around, home security systems can be activated with the wearable and a lot more. Wearables are going to be one important link between us and our environment around in coming days.

Market prospects:

As per IDC (International data corporation), the wearable market – India grew at 41.9 per cent in Q2 of 2016 (567,000 units) over the first quarter of 2016. The top five players are depicted below.

Other than the top five players, there are lot of interesting start-ups that are targeting fitness, safety and health (see table 1) .

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Table 1: Interesting start-ups in the wearable market

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Technology

A wearable device has multiple sensors to detect an array of physical parameters, powerful SoCs(System on Chip) which act as the brain of the wearable, related circuit to power the wearable and some form of wireless connectivity – Bluetooth, WiFi, NFC etc, so that it can talk to a mobile or can send data over cloud. Some wearable have an user interface as well for basic user interaction.

Components of a wearable device

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Basic Pre-requisites for starting-up

The time to develop and bring a wearable device to market could be up to three years. The process typically starts with a prototype development, which alone can take up to a year or more.  One needs a strong team of electronic engineers, software developers and subject matter experts.

The capital requirements can vary depending on the complexity and features of the product.  The cost would have three elements; human resources, manufacturing and marketing.  While it is difficult to estimate the budget as such, we could look at the funding raised by the start-ups in the wearable space as an indicative estimate. Funding raised by wearable start-ups in the first two-three years of their operations is more than Rs. 1 crore.

How can we help?

We can help you assess viability of your business idea through a number of services including market research, detailed viability assessment and technical consultation.

Reach Us:

bchhatre@finetrain.com

Call us- 800 888 4932

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How to use internet research to find new customers

Are you a small business looking for new markets and customers? Internet based research can help. Read more to find how.

Find companies that are selling products/services to same audience: Say you are selling industrial coolers to hotels and supermarkets – you could reach your customers through companies that may be selling ERP software or kitchen equipment to these segments.

Find exhibitions in your user industries: Check the exhibitor profiles (generally available online) of relevant exhibitions. The exhibitors are either very large established companies or new companies that are keen to grow. The exhibition organisers also provide a list of visitors to their exhibition which would come in very handy too.

Use LinkedIn: Use LinkedIn in to connect with people that matter. You can join various groups such as procurement professionals, mining professionals etc. Once you are part of a group, you can easily send a contact request and get to know more about your customers.

Use databases:  If you are looking for customers in foreign countries, international databases such as Hoovers, Nexis and Zavya can also be very useful.  Hoovers lets you find information on companies across industries. Zavya can be used to find information on Middle Eastern companies and Nexis lets you access a particular publication/research report.

How can we help?

FineTrain enables entrepreneurs to assess and understand new business opportunities. Our services include market research, business feasibility studies and business diagnostics. We can help you generate sales leads and find new channel partners.

Contact:

Write to us: bchhatre@finetrain.com

Call us: 800 888 4932

Visit us: www.finetrain.com

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