EXECUTIVE SUMMARY
V-GUARD INDUSTRIES LTD – BIG IDEA BUSINESS PLAN COMPETITION 2024
Team Name: Team BITSoM
Team Members:
1) Pulkit Sharma
2) Deepti Jain
Institute/B-School: BITS School of Management
Mobile No of Team Lead: 8168513044
Number of words: 1245 Date of Submission: 18 Aug 2024
PROBLEM STATEMENT
India generates over 3.2 million metric tons of electronic waste annually, contributing to severe environmental degradation. With limited
infrastructure for recycling and disposing of obsolete products, there is an urgent need for sustainable solutions. This business aims to
address this challenge by transforming end-of-life products into affordable, eco-friendly appliances, significantly reducing e-waste, and
promoting a circular economy.
BUSINESS MODEL CANVAS
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS
- Recycling Firms -Product Collection - Eco-Friendly Products - Incentive Programs - Eco-Conscious
logistics Consumers
- Retailers - More pocket-friendly -After-sales support channels
- Recycling Process options - Cost-Sensitive Buyers
- Government Bodies - Educational Campaigns
- New Product -Customer Re-engagement -Modern buyers
- Manufacturing development -Data-Driven Marketing
Partners or making - Corporate Social - Existing V-Guard
new capabilities - Proper disposal of Responsibility -Loyalty benefits Customers
waste which can’t be - Customer feedback(A lot of
- Scrap Dealers utilized - Making the sector of
End-of-life products an the waste can be reproduced
- Marketing and organized industry as art paintings)
Consumer Education
- Customer Data
Utilization
REVENUE STREAM KEY RESOURCES CHANNELS MISSION
- Product Sales - Recycling Facilities -D2C To revolutionize the home appliance industry by reducing
- Customer Database - Online Sales India's electronic waste footprint by 10% over the next five
- Government
years. We are dedicated to repurposing obsolete products
Incentives
- Design and -Retail Outlets into innovative, sustainable solutions that are accessible to
- Subscription Engineering Teams all while ensuring responsible disposal practices
-Corporate partnerships
Services
- Supply Chain under CSR activities
- Customer Data Infrastructure
Utilization
-Reselling of
components
COST STRUCTURE SOCIAL AND ENVIRONMENTAL IMPACT
- Collection and Logistics Positive - Reduction in E-Waste, Reduction of virgin resources, Proper disposal of
waste in landfills, Job Creation, Consumer Education
-Recycling and Processing
Negative - Initial Costs and Complexity, Consumer Perception
- Manufacturing (using Recycled Materials)
- Marketing and Sales VISION
- Research and Development (R&D) To become India's leading sustainable brand, where every obsolete product finds new
- Customer Engagement and CRM System life through innovative recycling and every home is powered by eco-friendly, affordable
appliances. We envision a future where electronic waste is minimized, resources are
-Cost borne to dispose of the obsolete waste conserved, and the environment is protected for future generations."
Technical Feasibility
The proposed business model emphasizes the transformation of end-of-life products into eco-friendly home appliances. From a
technical standpoint, this is feasible but complex. The key components include:
1. Recycling and Processing Facilities: Setting up and scaling recycling facilities for electronic waste (e-waste) requires
significant investment in technology and infrastructure. Existing technologies can be leveraged, but R&D efforts may be
needed to adapt these for large-scale operations, ensuring the quality of recycled materials for new products.
2. Product Development: Creating new appliances from recycled materials is technically viable, especially given the growing
advancements in material science. However, ensuring these products meet industry standards for durability and safety is
essential. This may require collaboration with manufacturing partners and ongoing testing.
3. Supply Chain Logistics: Collecting obsolete products from consumers and transporting them to recycling facilities is
achievable but will require an efficient and cost-effective logistics network. Technologies like IoT can optimize the tracking
and management of collected materials.
Financial Feasibility:
Suppose,Cost per Unit: ₹10 per product for collection, transportation, and initial sorting.
Annual Cost: ₹1,00,000 for collecting 10,000 products.
Recycling and Processing:
Cost per Unit: ₹100 per product for dismantling, material recovery, and reassembly.
Annual Cost: ₹10,00,000 for processing 10,000 products.
Manufacturing (using Recycled Materials):
Cost per Unit: ₹500 per product. This is 20% lower than using new materials, which would cost ₹600.
Annual Manufacturing Cost: ₹50,00,000 for producing 10,000 units.
Marketing and Sales:
Annual Budget: ₹5,00,000 for digital campaigns, customer outreach, and CSR marketing.
Research and Development (R&D):
Initial Investment: ₹2,00,000 for developing and refining recycling processes and new product designs.
Customer Engagement and CRM System:
Annual Cost: ₹3,00,000 for implementing and maintaining a CRM system to manage customer data, outreach, and loyalty
programs.
CSR and Community Initiatives:
Budget Allocation: ₹1,00,000 for CSR programs, including community workshops and educational campaigns.
Revenue Streams:
Product Sales:
Selling Price per Unit: ₹1,000 per unit.
Projected Annual Revenue: ₹1,00,00,000 from selling 10,000 units.
Government Incentives:
Potential Revenue: ₹2,00,000 annually from environmental subsidies for reducing electronic waste.
Subscription Services:
Annual Revenue: ₹5,00,000 from offering product recycling, upgrades, and extended warranties.
Customer Data Utilization:
Long-Term Revenue Potential: ₹1,00,000 from targeted marketing, upselling, and cross-selling based on customer insights.
Total Cost and Revenue Analysis:
Total Annual Costs:
Collection and Logistics: ₹1,00,000, Recycling and Processing: ₹10,00,000, Manufacturing: ₹50,00,000, Marketing and Sales:
₹5,00,000, R&D: ₹2,00,000, CRM System: ₹3,00,000
CSR Initiatives: ₹1,00,000
Total: ₹72,00,000
Total Annual Revenue:
Product Sales: ₹1,00,00,000, Government Incentives: ₹2,00,000, Subscription Services: ₹5,00,000, Data Monetization:
₹1,00,000, Total: ₹1,08,00,000
Net Profit: ₹36,00,000
Rationale of the Plan
The rationale behind the business model is strong, addressing both environmental and economic challenges:
Environmental Impact: India’s significant e-waste generation is a pressing issue. This plan tackles the problem by reducing the
waste that ends up in landfills and repurposing it into valuable products, which aligns well with global sustainability goals.
Economic Viability: By transforming waste into products, the model not only opens new revenue streams but also reduces the
costs associated with waste disposal. The potential for government incentives and partnerships under Corporate Social
Responsibility (CSR) activities adds further financial stability.
Market Differentiation: The emphasis on eco-friendly and affordable products positions V-Guard as a leader in the sustainable
home appliances market, which is becoming increasingly attractive to modern, eco-conscious consumers.
Innovation and New Ideas
The business model introduces several innovative ideas:
Circular Economy: The concept of turning end-of-life products into new appliances is innovative and aligns with the circular
economy model, which is becoming a key trend in sustainability.
Customer Re-engagement: Offering incentives and loyalty programs for customers who participate in the recycling program is a
novel approach to fostering customer relationships while promoting sustainability.
Repurposing Waste: The idea of transforming non-utilizable waste into art or other creative outputs adds an extra layer of
innovation, potentially creating additional revenue streams and consumer engagement opportunities.
Evaluation of Existing Trends
The business model is well-aligned with current industry trends:
Sustainability: There is a global shift towards sustainability in all sectors, including home appliances. Consumers are
increasingly favoring brands that offer eco-friendly products, and governments are providing incentives for sustainable practices.
Circular Economy: The model capitalizes on the growing trend of the circular economy, where companies are moving away
from linear production models to more sustainable, closed-loop systems.
Consumer Behavior: The focus on eco-conscious and cost-sensitive buyers aligns with the current consumer trend towards more
responsible purchasing decisions, especially in urban areas.
Research Work
The business model suggests that significant research has been done in the following areas:
E-Waste Statistics: The identification of India’s e-waste problem indicates a thorough understanding of the market need.
Recycling Technologies: The plan to partner with recycling firms and develop new products from recycled materials implies
research into the latest technologies in this space.
Market Segmentation: The identification of target customer segments, such as eco-conscious consumers and cost-sensitive
buyers, shows an understanding of consumer behavior trends, supported by data-driven marketing and customer engagement
strategies.
