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
INTRODUCTION
 Waste 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 cost
 Socio-economic sustainability
 Environmental sustainability
 Reduces gas emissions(Co2)
 Generation of electricity
PROCESSES OF PLASTIC RECYCLING
 Collection of bottles
 Sorting of bottles
 Grinding
 Washing
 Drying
 Pelleting
PLANT
SOURCING
Plastics can be sourced from:
 Airports
Eateries
Hotels
Industrial waste
Merchant traders
PRODUCTS/SERVICE OFFERING

Pellets
TARGET MARKET
FMCG Companies
Bottling companies
Manufacturers of PVC pipes
COMPETITORS
 Richbol Environmental Services Ltd

 Almas Company
BUSINESS STRATEGY
Strategic Alliance
 Recycling Of Used Plastics Ltd(RECOUP),UK
Pallman pulverizers Co Inc., USA

ValuPlastic e proposition

Rewarding citizens for providing used plastics

REVENUE MODEL
N
‘000

COST OF RENTING A 100,000

FACTORY(2000 sqm @ 50,000)
COST OF PLANTS FOR
PROCESSING PLASTICS 510,000
COST OF VEHICLES 315,000

TOTAL COST 925,000

REVENUE(N75,000 per ton) 1,725,000

23,000 tons/yr
Gross Income 800,000
FINANCIAL PROJECTIONS
GROSS COST OF NET
LOAN INCOME OVERHEAD CAPITAL REPAYMENT INCOME
(N’000) YEAR (N’000) (N’000) (N’000) (N’000) (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
 Assume 3% increment/yr(Income)
 Assume 5% increment/yr(Cost)
 Total payment of loan @ end of second year
CONCLUSION
 The time has come to take advantage of plastic
recycling to generate immense financial value for
our prestigious organization.
THANK YOU FOR LISTENING