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Recycling electronic waste
- 1. • Infographic StyleRecycling Electronic Waste “E-Waste” Business Plan March, 2020 By: Sherin Haroun El Rashied
- 2. Agenda Executive Summary01 The E-Waste Industry02 Our Idea/Project 03 The Business Study 04
- 5. Why Electronics Waste is Important? Rich Source of Raw Materials. Old electronic devices contain toxic material. International Movement of Hazardous Waste. Solid Waste Management.
- 6. • Electronics waste, commonly known as e-scrap or e-waste, is the trash we generate from surplus, broken, and obsolete electronic devices. • E-waste or electronics recycling is the process of recovering material from old devices to use in new products. • Unfortunately, the majority of these electronic products end up in landfills, and just 12.5% of e-waste is recycled. Electronics Waste – Definition Apple revealed that it recovered 2,204 pounds of gold worth $40 million from recycled iPhones, Macs, and iPads in 2015.
- 9. Market Outlook - Globally • The amount of worldwide e-waste generation is expected to exceed 50 million tons by 2020, with an annual growth between 4% and 5%. • The amount of global e-waste is expected to grow by 8% per year. • Roughly, 40% of e-waste generated in the U.S., Canada, and Europe is exported to Asia, a trade flow that is a source of considerable controversy.
- 10. Market Outlook - Globally The major players in this e-waste management market include: 1. Aurubis AG (Germany), 2. Boliden AB (Sweden), 3. MBA Polymers, Inc. (California – U.S.), 4. Electronic Recyclers International, Inc. (U.S.), 5. Sims Metal Management Ltd. (Australia), 6. Umicore S.A. (Belgium), 7. Stena Technoworld AB (Sweden), 8. Tetronics (International) Ltd. (U.K.), 9. Enviro-Hub Holdings Ltd. (Singapore), and 10. Global Electric Electronic Processing Inc. (Canada).
- 11. Average No. of E-Waste tons Worldwide
- 12. Market Outlook - Locally • Electrical and electronic equipment waste is one of the fastest growing waste streams in the world and Egypt is no exception. According to the latest report by Global E-waste Monitor, Egypt is one of Africa's biggest e-waste-generating countries at 0.5 million metric tons annually. • Recycling this waste is the right thing to do not only for Egypt's ecology, but for its economy as well. • Egypt’s Ministry of Communications and Information Technology partnered with Sustainable Recycling Industries (SRI) of Switzerland in 2016 to implement standards for handling e- waste for the first time ever in Egypt. • There are currently 4 factories in Cairo that recycle e-waste. Their main challenge seems to be getting enough waste to recycle. Although Egypt produces large amounts of e-waste, most of it is processed by the informal sector. Globally, 15-20% of e-waste is recycled while only 5% of e-waste is processed in the Middle East and North Africa. The rest is usually dumped in landfills.
- 14. The Opportunity
- 15. Business Opportunities • Egypt produces large amounts of e- waste: • Mass Production. • Mass consummation. • Mass disposal. • Less number of competitors. Local Market Study • The team member knowledge. • Management Ownership: • Factories. • Partners (NGOs, Governmental partners). Internal Capacity • Collaboration with shipping companies. Collaborative Logistics • Informal Workers. • Culture resistance. • Initiative لألخضر اتحضر Analysis of Local Industry
- 16. SWOT Analysis Our main Strength lies in the power of our team; our workforce. We have a team with excellent qualifications and experience in various niche areas in the recycling industry. However, the Weakness that we may face that it might take some time for our company to break into the market and gain awareness of consumers. On the other hand, we have great Opportunities, as E-waste-recycling industry is massive considering the number of individuals who considered as a source of raw materials, thus we are ready to take advantage of any opportunity that is available in the industry. Finally, the Threat we may face in our project will be related to government policies S W O T
- 17. External Environment • Stability of Government. • Social Policies. • Laws and Regulations. • Waste management. • Recycling. • Attitude towards & support for renewable energy. • Innovation. • Technology level in the country. • Disposal income reflected in consummation. • Fiscal Policies. • Population demographic. • Lifestyle and trends. • Population growth. • Culture & attitude towards E- waste. PESTEL
- 18. Market Analysis Market Trends Governments all over the world and even international Non – Government Organizations are in the forefront when it comes to campaigning in favor of recycling materials to generate raw materials for industries as against tapping virgin raw materials. Target Market We are certain that there is a wide range of manufacturing / production factories that cannot successfully run their businesses without sourcing for recycled electronic materials from us. There are currently four factories in Cairo that recycle E-waste. Competitive Advantage Our competitive advantage lies in the power of our team; our workforce, in addition to partners; Ministry of Environment and Ministry of CIT.
- 19. Value Proposition • Peace of mind. • Increase awareness about E-waste. • Health environment. • Bounce. • Free space at home. • Get rid of different E-waste. • Our Project. • Keep the old device. • Try to sell the old device. • Free of charge. • Save way to get rid of E-waste. • Educate about green ICT. • E-waste take spaces in homes. • E-waste have negative self-impact on health. • Fear of hacking data on devices.
- 20. Business Model “Lean Canvas” Consumer: • The Lack of knowing how to get rid of E-waste. • Regulation, Laws & Administrative procedures. • Educate E-waste management. • Keep it as a trash. • Sell it (personal security issues). • # of Consumers (5000). • # of Partners . • 4 factories. • 10 corporate for e- voucher. Consumer: • Get rid of E-waste. • Earn points. • Easy access to portal Factories: • Material. • Increase productivity. • Happy Customers. • Happy Environment. • TV & Radio “awareness program” sponsored by E- waste factories”. • Website & Social media. • Direct marketing mails. • Telesales. Consumers: • Group age: • Women • Youth (16- 25) Rrecycling factories. • Consumers. • Deals with Recycling Factories (25% profit margin).• Startup Cost. • Fixed cost (Storage – portal - PCs). • Variable Cost (Salaries – Marketing - Logistics “delivery”). • Ministry of Environment. • Ministry of CIT. Our Project
- 21. Competitors Analysis RecycloBekia • Is an electronic waste recycling company based in Egypt and serving the Middle East and North Africa (MENA) region. • They are the first company in the Arab world offering green recycling of electronic waste and safe data destruction services. • They are B2B. • Their slogan is “Recycling Army”. Informal Workers • Collect e-waste and sell it to workshops or waste recyclers, who usually dismantle the items and sell each material independently. • They don’t know about the importance of E-waste or how to deal with. • Ahmed Yehia, head of the International Technology Group, one of Egypt’s biggest e-waste recyclers, those informal waste recyclers collect most of the e-waste produced in the country, leaving very little supply for formal recyclers. “They sort it and export it in bulk as waste with zero government oversight,” he said.
- 22. Production costs exceed estimates. Government regulations and laws. Informal Workers. Difficulty in finding qualified employees. Lack of consumer awareness about how to get rid of E-waste. Risk Analysis 1 2 3 5 4
- 23. Raising Culture awareness on Ewaste • The first International E-Waste Day, has been developed by the WEEE (waste electrical and electronic equipment) Forum as the first International E-Waste Day is being held on the 13 October to promote the correct disposal of waste electrical and electronic equipment throughout the world. • International E-Waste Day will aim to raise the public profile of responsible e- waste recycling and encourage consumers to recycle their e-waste with the resulting increase in recycling rates on the day itself and into the future. International Local • There is a lack of awareness about how to get rid of E-waste. • Our Projectaiming to build awareness among consumer about the importance of E-waste recycling.
- 26. • We are a start-up company working in the field of electronic waste by collecting it from users and reselling it to the beneficiaries for recycling “Broker”, through online portal and mobile application. • With Win-Win solution, we are going to have partnerships with recycling factories. • Our main target segment will include “Consumers (Women & Youth with age 15-25 and Rrecycling factories”. Executive Summary
- 27. Our Main Goals Revenue Generation Employment Creation
- 28. Our vision is to be a leader in providing a better solution for green environment for the whole world. Our mission is to be online broker that help people get rid of their electronic waste in a safe and profitable way for them and the stakeholders, In addition, we are aiming to build awareness among consumer about the importance of E-waste Recycling.
- 29. Our Service (Operation) Consumer •E-waste (focus on IT devices). Portal/Mobile Applications •Create user account, log to account, fill form. •Adding bounce to user account (1,000 Point = 100 L.E.) (Points to be determined upon the product as listed on portal/App). •Points to be redeemed as e-voucher – deals with: “Hyper markets – Mobile shops – …etc”. Collect E-waste •Customer services to call back and arrange date to collect E-waste free. Sort Ewaste •Mobiles, PCs, Laptops, Scanners, Printers, iPODs, Tablets..etc. Delivery •To E-waste factories.
- 30. Management Strategy and Marketing Strategy KaraKeb,Consumer to Business (C2B) marketing. KaraKeb, Generic competitive strategy is differentiation. KaraKeb, main market strategy is Market Penetration. “The first step toward a successful marketing campaign is a strategic position.”
- 31. Location KaraKeb, will operate in Greater Cairo “6th of October city – Giza Governance”, mainly near industry zone. The location is approximately 20 miles from downtown.
- 32. Company’s Legality KaraKeb, will be formed as a Limited Liability Company “LLC”, which will be closed due to the limited liability of its shareholders equivalent to their shares' values in the capital of the company. Therefore, it may be defined as a private company whose owners are legally responsible for its debts only to the extent of the amount of capital they invested.
- 33. Ownership • Deals with Recycling Factories. • Deals Hyper markets, Mobile Shops………etc.
- 34. Organization Chart Boardofdirectors Manager 1 Operation 2 Employees Marketing &Media 2 Employees Manager 2 Management 2 Employees Transportation 1 Employees Manager 3 PR 1 Employees CRM 1 Employees Manager 4 HR 1 Employees Finance 1 Employees Function-Based Hierarchy
- 35. Time Plan 3 Months 1 Month 1 Month 1 Month Go live Preparation (Rent office, warehouse and Tracks) Legalization Partnership & Deals Hiring and Marketing Operate 6 months to start
- 36. Financial Study
- 37. Required Investment EGP 1,000,000 NP (1st Year) 14% Company Value (After 5th year) 14.5M
- 38. Market Cost Calculating Model for Electronic Waste Management • The focus of this Financial study was to create a cost calculating model for the collection of E- Waste at KaraKebcontainer stations. • The purpose of this model is to predict the expenses of a process by organizing and analyzing information and the activities that make up the process. • The finalized model was used to determine collection costs from consumers/companies, and the estimated revenues for KaraKeb. • The cost includes all bonus points to be distributed to consumers, transportation, collection, sorting, shredding, and dismantling costs. • The revenues includes the brokerage price on each ton of E-Waste delivered to recycling factories.
- 39. Assumptions
- 40. Income Statement
- 41. Company Value Years - 1 2 3 4 5 Year0 Year1 Year2 Year3 Year4 Year5 Intial Investments 1,000,000 (1,000,000) Free Cash Flow (EBIT-CAPEX) 286,000 3,321,800 5,589,880 8,114,004 10,963,319 Net Free Cash Flow (1,000,000) 286,000 3,321,800 5,589,880 8,114,004 10,963,319 Discount Rate 18.90% 240,538 2,349,686 3,325,500 4,059,829 4,613,524 PV 14,589,077 14,589,077 240,538 2,349,686 3,325,500 4,059,829 4,613,524 NPV 13,589,077 Internal Rate of Return 177.4% 177.44% Payback Period 1.5 Shareholders 10,941,808 75% Investors 3,647,269 25% Value of Company 14,589,077
Editor's Notes
- Rich Source of Raw Materials Internationally, only 10-15 percent of the gold in e-waste is successfully recovered while the rest is lost. Ironically, electronic waste contains deposits of precious metal estimated to be between 40 and 50 times richer than ores mined from the earth, according to the United Nations. Toxic Materials Because old electronic devices contain toxic substances such as lead, mercury, cadmium and chromium, proper processing is essential to ensure that these materials are not released into the environment. They may also contain other heavy metals and potentially toxic chemical flame retardants. International Movement of Hazardous Waste The uncontrolled movement of e-waste to countries where cheap labor and primitive approaches to recycling have resulted in health risks to residents exposed to the release of toxins continues to an issue of concern. Solid Waste Management Because the explosion of growth in the electronics industry, combined with short product life cycle has led to a rapid escalation in the generation of solid waste.
- Electronics waste, commonly known as e-scrap or e-waste, is the trash we generate from surplus, broken, and obsolete electronic devices. Electronics contains various toxic and hazardous chemicals and materials that are released into the environment if we do not dispose of them properly. E-waste or electronics recycling is the process of recovering material from old devices to use in new products. Some of the common E-wastes include: home appliances such as televisions, air conditioners, electric cookers and heaters, air condoners, fans, DVDs, Radios and microwaves among others; information technology equipment's such as computers, mobile phones, laptops, batteries, circuit boards, hard disks, and monitors among others; and other electronic utilities such as leisure, lighting, and sporting equipment's. Unfortunately, the majority of these electronic products end up in landfills, and just 12.5% of e-waste is recycled. According to a UN study, over 41.8 million tons of e-waste was discarded worldwide, with only 10%–40% percent of disposals appropriately done. Electronics are full of valuable materials, including copper, tin, iron, aluminum, fossil fuels, titanium, gold, and silver. Many of the materials used in making these electronic devices can be recovered, reused, and recycled—including plastics, metals, and glass. In a report, Apple revealed that it recovered 2,204 pounds of gold worth $40 million from recycled iPhones, Macs, and iPads in 2015.
- The amount of worldwide e-waste generation is expected to exceed 50 million tons by 2020, with an annual growth between 4% and 5%. This quantity includes 16.8 million metric tons of small equipment; 9.1 million metric tons of large equipment; 7.6 million metric tons of temperature exchange (freezing and cooling) equipment; 6.6 million metric tons of screens and monitors; 3.9 million metric tons of small IT,; and 0.7 million metric tons of lamps. UN agencies have come together with the World Economic Forum, the Global Environment Facility, and the World Business Council for Sustainable Development to call for an overhaul of the current electronics system. A total of 67 countries have legislation in place to deal with the e-waste they generate. Japan generated 2,139 kilotonnes of e-waste, only 26% of which was formally collected. On a per capita average basis, each Japanese resident discarded 16.9 kilograms of e-waste, less than the USA and UK average levels (19.4 kg and 24.9 kg per person, respectively) but far above the Asian per capita average of 4.2 kg. The Nigerian Government, the Global Environment Facility and UN Environment have announced a $15-million initiative to kick off a circular e-waste system in Nigeria in 2019. The amount of global e-waste is expected to grow by 8% per year. Roughly 40% of e-waste generated in the U.S., Canada, and Europe is exported to Asia, a trade flow that is a source of considerable controversy. As much as 7% of the world’s gold may currently be contained in e-waste, with 100 times more gold in a tonne of e-waste than in a tonne of gold ore.
- Mobile phones, computers and tablets play a vital role in our lives today, but they also contribute to a growing electronic waste problem. Given the speed of developments in technology, the shorter lifespan of these products and the replacement of electronic devices with newer models, e-waste will only continue to grow. Most of this waste is not recycled. Globally, 15-20% of e-waste is recycled while only 5% of e-waste is processed in the Middle East and North Africa. The rest is usually dumped in landfills. “E-waste can be a profitable industry for Egypt,” Moghny told Al-Monitor. By creating factories that recycle e-waste and make use of precious metals, you help create jobs in collecting, dismantling and recycling e-waste. But there are also hazards that we have to watch out for and prevent.” Heavy metals and other toxic substances found in electronics such as lead, arsenic and mercury contaminate groundwater and soil, posing serious health and environmental hazards. But e-waste also contains precious metals such as gold, silver and other valuable materials such as glass, plastics and ceramics that can be reused in different products. The problem is that extracting precious metals and materials from electronic devices can be hazardous for those who do the job by hand, usually garbage collectors and scavengers — the so-called informal sector. They often rely on unsafe recycling methods such as burning cables to extract copper and submerging equipment in toxic acids. Egypt’s Ministry of Communications and Information Technology partnered with Sustainable Recycling Industries (SRI) of Switzerland in 2016 to implement standards for handling e-waste for the first time ever in Egypt. “We now have a new conformity system,” explained Moghny. “In any government auction, electronic waste must now be separated from other waste before selling it by the ton. Bidders participating in the auction must also be accredited by the Environment Impact Assessment to ensure that e-waste will be handled in an environmentally friendly manner.” Moghny said that although there are no rules or regulations yet for the private sector, she believes that they will soon follow: “With the government already taking the first step to address and develop a formal system for handling e-waste, this will trickle down to the private sector.” There are currently four factories in Cairo that recycle e-waste. Their main challenge seems to be getting enough waste to recycle. Although Egypt produces large amounts of e-waste, most of it is processed by the informal sector. Egyptian Electronics Recycling Co. ( EERc ) EcoMENA International Technology Group (ITG) E-Khorda
- Ahmed Yehia, head of the International Technology Group, one of Egypt’s biggest e-waste recyclers, told Business Monthly, the English-language magazine published by the American Chamber of Commerce in Egypt, that informal waste recyclers collect most of the e-waste produced in the country, leaving very little supply for formal recyclers. “They sort it and export it in bulk as waste with zero government oversight,” he said.
- The first International E-Waste Day, The first International E-Waste Day is being held on the 13 October to promote the correct disposal of waste electrical and electronic equipment throughout the world. International E-Waste Day has been developed by the WEEE (waste electrical and electronic equipment) Forum, an international association of e-waste collection schemes comprised of 26 members, including TechCollect. 40 organizations in 20 different countries are involved in the Forum worldwide. International E-Waste Day will aim to raise the public profile of responsible e-waste recycling and encourage consumers to recycle their e-waste with the resulting increase in recycling rates on the day itself and into the future.
- Our goal as a company is not just Revenue Generation through services provided by our company, but also Employment Creation by creating job opportunities for community residents or the constituency served by our company.
- Consumer- to- Business is a business model where the end consumers create products and services which are consumed by businesses and organizations. The generic strategy builds competitive advantage base, KaraKeb, Generic competitive strategy is differentiation, the generic strategy builds competitive advantage base. Market penetration: focus on current products and current markets in order to increase market share. Market penetration requires strong execution in pricing, promotion, and distribution in order to grow market share. Under Armour is a good example of a company that has demonstrated successful market penetration. KaraKeb, main market strategy is Market Penetration, Market penetration: focus on current products and current markets in order to increase market share. Market penetration requires strong execution in pricing, promotion, and distribution in order to grow market share. Under Armour is a good example of a company that has demonstrated successful market penetration. In view of that, we will have an aggressive market campaign that include: TV & Radio “awareness program” sponsored by ewaste factories”. Website & Social media. Direct marketing mails. Telesales.
- Functional structure is set up so that each portion of the organization is grouped according to its purpose. In this type of organization, for example, there may be a marketing department, a sales department and a production department. The functional structure works very well for small businesses in which each department can rely on the talent and knowledge of its workers and support itself.