Green Wealth Pvt. Ltd converting Waste to Wealth

Assignment Taken

Leadership in General Management and IT & BA Department

Case Understanding

There is a huge issue of waste management in India as Urban India alone produces 42 million tons of municipal solid waste. The Swachh Bharat Mission (SBM) is a step taken by Ministry of Urban Development to ensure hygiene, sanitation and proper waste management across India. The key objective of the mission is to develop a waste management system through which waste can be utilized for wealth creation. The state government of Madhya Pradesh is encouraging a public-private partnership scheme for the improvement of urban infrastructure so that the state can better plan for the future and achieve sustained growth. Current waste management practises have become inefficient and financially nonviable in smaller urban local bodies due to excessive cost and a lack of available land. The government is planning to build regional integrated waste management facilities that will serve the nearby urban and suburban areas, so the government of Madhya Pradesh is seeking private sector participation in Integrated Municipal Solid Waste Management Projects involving the phases of Design, Construction, Financing, Operation, and Transfer in order to turn Waste into Wealth. Established in 1998, Green Wealth Pvt. Ltd. is a Bhopal-based waste management company. The company has a cash reserve of Rs. 60 crores that can be put toward any project, and it can also borrow up to Rs. 150 crores from banks. The company has recently opted to take part in the "Waste To Wealth" scheme launched by the state of M.P. for the city of Bhopal, for which we need to make a comprehensive plan and proposal that takes into account all of the requirements for this project, including marketing, finance, human resources, and information technology.

BCS Solution Summary

Our proposal is to fund garbage sorting, waste transportation, and waste-to-energy facilities. Since municipal waste encompasses such a broad category of trash, the first step in addressing the problem of municipal solid wastes is to sort the wastes into their respective categories. Next is transportation of these wastes from households to sorting centres, sorting centres to waste-to-energy plant and plant to landfill. The biggest investment to be done is the waste-to-energy plants which incinerates the wastes as about 90% of the volume of solid waste can be reduced through incineration, and the energy from the combustion process can be used to generate electricity. Together with waste that cannot be burned, the ash residue that are left over from the incineration process are transported to the landfill to be disposed of. This method will extend the life span of landfills as well as generate electricity. The other half of the wastes collected i.e., the bio wastes will be converted into green fertilizers. We intend to be selling the electricity and fertilizers to the government itself and if not possible we will be approaching private companies. In order for us to be successful with the initiative, we have also suggested that the government establish a system that is similar to the Deposit Refund System (DRS). The German government devised and put into action a programme known as DRS with the intention of increasing the percentage of waste that is recycled throughout the country. This programme has been quite successful and we intend it to be the same in India. We will also be focusing on health and safety of all our employees through our HR practices and use of automation in waste-to-energy plant. Aside from that, there will be an emphasis placed on branding our company, engaging in CSR activities, and initiating social initiatives in the hopes that this will assist us in establishing ourselves as a responsible corporate entity and providing a positive example that will lead to the acquisition of additional projects from neighbouring cities and states.

Solution

About our Company: Green Wealth Pvt. Ltd. is looking forward to redefine municipal solid waste management (MSW) system in Bhopal.

Our Vision: To reduce the amount of waste by promoting individual and corporate responsibility. To recover highest value from waste

Our Mission: To become a leading enterprise for managing solid waste of Bhopal by promoting equitable, sustainable, environmentally sound and cost-effective practices through an integrated system of waste reduction, reuse, recycling, innovative technology, education and service.

Our Values:

• Innovation
• Public education
• Resourcefulness
• Community Partnerships
• Integrity
• Equity
• Efficiency

Bhopal-

City - Tier 2

Government – Municipal Corporation

Population – 2.5 million

Waste generation – 886.5 metric tonnes/day

As the company will be working on Municipal Solid Waste Management project, let’s start with first understanding what are solid wastes. To put it simply, solid waste consists of anything of no use or value that is generated as a by-product of human activity and then discarded. It might be a by-product of manufacturing activities or the result of waste generated in the residential or commercial sectors. Examples of solid wastes include waste tires, scrap metal, furniture and toys, garbage, appliances and vehicles. But to start working on Municipal solid wastes we need to start by first segregating the wastes as from food scraps and yard trimmings to paper, glass, and plastic, municipal waste includes a wide range of trash. Cities all over the world have long struggled to find effective solutions for managing their waste due to the wide range of materials in the municipal waste. 

To win the project we also suggest the government to implement a similar system as Deposit Refund System (DRS). DRS is a scheme implemented by the government of Germany to increase the recycling rate of the country which has proved to be very successful. Under the scheme, recyclable bottles would be marked as such. A deposit is required to purchase them and this cost is refunded when an empty bottle is brought back to the shop. This is a well-thought-out plan to get people to recycle their plastic bottles. We suggest Green Wallet a feature that allows residents to link up with nearby recycling centres and earn value in the form of "Green Credits" in their Green Wallet by recycling various materials such as plastics, carton boxes, used beverage cans, metals, and even e-wastes. Residents can use the green credits they accrue to cover their monthly water, electric, phone, and gas costs. Green credits can be used to purchase groceries, meals, and other commodities.

Operations Flow 

A 5 step process: 

1.     Door to Door waste collection  

2.     Transportation of collected waste to sorting centre

3.     Segregation of wastes into 4 categories recyclable, incinerable, non-incinerable and bio wastes.

4.     Transportation of sorted waste from sorting centre to waste-to-energy plant to incinerate to generate electricity and decompose to produce fertilizers.

5.     Disposal of waste that cannot be burned and the ash residue to landfill

Step-1: Door to Door waste collection

Waste segregation and disposal are significant issues. If the trash is separated into distinct piles, it will be much simpler to process, and we will be able to extract more money and use from the trash. We recommend instituting segregation in Bhopal at the residential level, splitting trash into three distinct types: wet waste, dry waste, and hazardous waste. We will be collecting the trash from every house under municipal along with public dustbins.

Step-2: Transportation of collected waste to sorting centre

We also suggest to use electric vehicles for primary waste collection to present a more sustainable and greener alternative to fuel which also helps us to build a positive image of the brand. This vehicle will be used to acquire the primary waste from households and transport it to the waste sorting centres. From a recent survey it was also noted that people do not use dustbin in public because most of the time the dustbins are overflowing with wastes and the area around it becomes very unhygienic. To solve this issue we suggest to collect the public garbage and empty the bins twice a day, one around 11AM – 12Noon and another at night 10PM-11PM.

Step-3: Segregation of waste

Waste would be sorted and separated by both a high-tech machine capable of high efficiency and by hand at a more macro level. Currently, much of the garbage's potential value is wasted because of inefficient waste segmentation and a completely manual procedure. With this cutting-edge segregation method, we will be able to extract more money from trash. After proper sorting, all recyclable trash will be recycled and sold to a commercial recycler.

Step-4: Transportation of sorted waste from sorting centre to waste-to-energy plant and incineration

The solid waste will be processed in a Waste-to-Energy plant where the trash would be incinerated to generate energy that will then be converted into electricity. This method of solid waste management is widely used in SINGAPORE and has helped the country to reduce the amount of waste dumped in the landfills. Incinerating the waste reduces the volume by 90% and generates heat energy which is converted into electricity which we intend to use for running our own operations and also to sell to the government. 

The remaining waste will be composted and can be used for creating fertilizers for agricultural purposes and other organic uses like in gardens.

Step-5: Disposal of waste that cannot be burned and the ash residue to landfill

Together with waste that cannot be burned, the ash residue that are left over from the incineration process are transported to the landfill to be disposed of

Organizational structure:

The rationale for Organization Structure:

• HRM – Human resource of the company will consist of workers who are unskilled, semi-skilled, skilled, and highly skilled. These workers will be distributed across a variety of departments and functions, such as public relations, human resources, accounts, waste collection, waste sorting, plant and landfill management, and other positions such as security officers, cleaners, mechanics/handymen, and office attendants. Also, through the company’s human resource policies and the implementation of automation in the waste-to-energy plant, we are committed to ensuring the health and safety of each and every one of our employees.HR department will directly report to the CEO of company.

** A detailed HR plan is provided in the HR Report **

• Marketing – The marketing will help in building a brand to get more government waste projects from neighboring cities and states. The team will also work to create awareness among the people to recycle more and avail benefits from green wallet.

** A detailed marketing plan is provided in the Marketing Report **

• IT and Business Analytics – IT department is required to support the automation and data collection for further analysis. This analysis will be used by the upper management to make strategic. The IT and BA team will report directly to the CEO.

** A detailed IT plan is provided in the IT Report **

• Operations – A strong operations team is needed to manage the transport, sorting and the waste-to-energy plants incorporating Industry 4.0 into the business. The team will directly report to the CEO of the company.

• Finance – This department is an essential to manage all the financials and budgets of the company. It will directly report to the CEO.

** A detailed financial budget is provided in the Financial & Operations Report **

Conclusion

With the plan suggested and government's support Green wealth Pvt. Ltd. would be able to actually convert waste to wealth. All the recommendations made are practically feasible and some part of it has been already successfully implemented in few countries.

Attached File Details

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