Introduction:

We live in a technologically advanced world. One downside to all this advancement is the amount of waste generated. Recycling generates a host of financial, environmental, and social returns. Some of these benefits accrue locally as well as globally. It turns materials that would otherwise become waste into valuable resources. The estimated power consumption in the UAE for 2010 was 1221 Terawatt Hours (TWh). An increase in regional generation to 1,463 TWh by 2014 is forecasted, representing a rise of 19.8% between 2010 and the end of the period. Looking at those figures, we can predict the rising trends in the use of white goods. The UAE currently suffers from the lack of energy conservation owing to fast-rising populations, and rapid economic growth. High consumption per head is encouraged by heavily subsidized prices and the resulting lack of an energy-saving culture. Strict UN Laws coupled with the countrys desire to become eco efficient, makes recycling and recovery of white goods a very lucrative avenue as a business venture. We plan to take advantage of this by tapping the market at an early stage before other companies start investing. The supply is endless because technology keeps advancing, and old stuff keeps getting thrown out. Its saddening to see all that potential lying there wasted, when it could easily be taken apart, recycled and made into new products. We offer a reliable and quality service so that people can get this thing off their head and let us do the job. Most of the goods about to be thrown can be recovered and repaired at a minor cost. What discourages people is the time required to search for and find someone to repair them at low prices. We can offer them repair services at low prices and an unbeatable quality standard when compared to other small repair shops. The amount of Raw material required for the production of white goods is limited. These resources are depleting day by day, and its our duty to recycle white goods and recover some if not most of those resources. The recent floods in Thailand and the earthquake in Japan have had a negative impact on the supply of rare earth metals. Natural disasters cant be avoided, so its our duty to conserve as much as we can.

Then there is the huge issue of improper disposal of electronic waste. There are strict guidelines on the safe and proper disposal of electronic waste. These guidelines are hardly followed as people just throw their stuff out after which it goes to landfills, staying there indefinitely and causing a lot of harm to the environment. They do this without knowing the implications and the detrimental effects on the environment. For example refrigerators have to be drained of Freon properly with industrial grade equipment. Releasing ozone depleting compounds has to be handled by a certified technician. People dont have the time or the resources to do this. This is where we come in. We provide for them a way to get their electronic waste out of their hands, and have it disposed of and recycled properly. What we plan on offering in terms of environmental & financial conservation hasnt been taken up by anyone else in this region, so we could essentially end up making a lot of money. Since the market is un- tapped as of now, we have a very good chance to make it big in this region. Government support is guaranteed due to the Eco friendly and economic nature of this business. We can help improve the countrys image as well as get it a good reputation in the United Nations for its green initiatives. The general public is waking up to the new found green movement. Frankly put, White goods recycling is the future. The positive aspects of this business are too good to avoid. Tapping into this market at an early stage is of paramount importance, to ensure that we have a monopoly in the UAE. The white goods market is going to skyrocket over the next 10-20 years. Eventually, the amount of goods thrown out is also going to go up. What people need right now is a good brand that they can trust for recycling their stuff in a proper standardized way. This is where we come in. We provide them with that experience. We ensure that they are not disappointed and that they get their share in conserving and protecting the environment.

Competitors:
Recycling of White goods hasnt really taken off in the UAE. As of now there are no companies dealing with white goods recycling. Thus, we have the distinct advantage of being the first company to enter this market in the UAE. We could essentially become a monopoly in this country. However we shouldnt disregard the possibility that other enterprising individuals might take up this idea in the near future. We cannot dismiss the idea of competitors. In the event that we do have a competitor, it would be detrimental for our business due to limited supply of white goods, owing to the size of the country. However, we do have some minor competition in the repair aspect of our business. Small maintenance and repair shops, offer the same services that we do albeit at a slightly higher price. To counter this we have to rely on our ability to do the repairs at a smaller cost as well as our quality of service. We essentially offer a branded & customized experience. We deal with customers on a personal level to achieve better customer satisfaction. We have a brand image advantage over these smaller repair shops. We also offer Door-to-Door collection services for free, which takes the headache and tension off the people who want to dispose of their Fridges or microwaves. Our only other competitors are the companies that deal in these White goods and offer recycling schemes. This is however not cost effective for them and we hope that they might discontinue it in the light of the better and more robust solutions offered by our company.

Following is a table comparing us to our potential competitors:

Key Success Factors Customer Satisfaction Market Reach Economics Of Scale Total Weighting 0.3 0.2 0.1 Competitor Rating 6 5 4 15 Competitor Weighted 1.8 1 0.4 3.2 Our Rating 9 9 8 26 Our Weighted 2.7 1.8 0.8 5.3

The Recycling Process:

The recycled output of white goods like Refrigerators, Microwaves, and Washing machines is mainly metal. The metal obtained is segregated into main categories; Ferrous & non-Ferrous. The Non-Ferrous metals can be further divided into Copper, Brass & Aluminum. The recycling plant used here comes as a whole kit including: Conveyor Belt. Freon/Oil Suction Unit. Shredder. Magnetic Separator (For Ferrous parts). Eddy Current Separator (For Non-Ferrous parts).

The process goes on as follows. The White goods are bought to the Manual Dismantling Area with the help of forklifts. All the manual disassembling is carried out here by the unskilled workers. For refrigerators, the draining of ozone depleting gases like Freon is carried out by a certified technician. The dismantled pieces are then put onto the conveyor belt after a final checking by the supervisor to confirm that no harmful substances make it to the shredder. The conveyor belt carries the components to the shredder, where they are shredded into tiny pieces. These tiny pieces are then carried to the magnetic separator, where the ferrous bits are separated out and collected in a standard 1 ton container. The non-ferrous chips are then carried forward to the Eddy current separator. The Eddy current separator filters out various metals at different speeds. All of them are collected in standard 1 ton containers. The leftover plastic chips are also

collected. These containers are then transferred to their specific trucks with the help of forklifts. They stay there till there is enough metal collected, after which they are transported to the respective clients.

Licensing & Property Setup:

Our company is based in Ajman, due to cheaper Property costs. Also, Ajman has a central location, when we consider the fact that our services extend from Abu Dhabi to Ras Al-Khaimah. The accommodation & costs of living are very cheap in Ajman when compared with the other emirates.

The costs for Licensing Our Company are outlined below:

Type Quota Labour Card Fee* Labour Card Typing Visa Fee* Visa Typing Visa Stamp Bank Deposit Entry Permit Medical Fee Tasheel Total

No. of Employees 37 37 37 37 37 37 37 37 37

Unit Cost 20 200 35 2,000 35 415 3,000 215 590 15

Total Cost 20 7,435 1,295 74,035 1,295 15,355 111,000 7,955 21,830 555 210,435 Total 4,780,000 5,006,500 620,000 4,560,000 3,600,000 10,020,000 28,586,500

Monthly Warehouse & Land* Machinery & Plant* Vehicles Water And Electricity Charges Petrol Costs Employee Salaries Total Cost

Annual

38,000 30,000 83,500 151,500

456,000 360,000 1,002,000 1,818,000

PROJECT ECONOMICS:
Equipment Cost:
For our project will be used complete plant, which will recycle refrigerators as well as other white goods. The plant provides up to 90 % cleanness of output materials. The plant consists of: Manual dismantling line. CFC (Freon)/Oil Suction Unit. Shredder. Magnetic separator for ferrous parts. Eddy-current separator for non-ferrous fractions.

The total price of the factory with installation is AED 8,126,370. For establishing of the plant we will purchase the following properties: Name Warehouse + Factory Scrap yard Total The other expenses are: Equipment Type Conveyor Belt Freon/Oil Suction Unit Shredder Magnetic Separator Eddy Current Separator Tool Kits Power Tools Total Name Trucks (Hyundai HD65) Forklifts (Toyota) Total Quantity 1 1 1 1 1 10 1 16 Quantity
8

Area (Sq. Meters) 2,000 500 16

Cost (Per Sq. M) 2,280 440

Total Cost 4,560,000 220,000 4,780,000

Cost Per Machine

Total Cost

2,500,000

150 5,000

1,500 5,000 2,506,500 Total Cost 520,000 1000,000 620,000

2 10

Cost (Per Vehicle) 65,000 50,000

Our price for output depends on the type of fraction, so: Name Copper Brass Aluminum Iron Plastic Price per Ton 18000 14000 5000 1200 4500

Cash Return:
Below is a Cash Return table of our White Goods recycling Business:

Cumulative Cash Return Profile:

AED 25,000,000 AED 20,000,000 AED 15,000,000 Cumulative Cash Return AED 10,000,000 AED 5,000,000 AED 0 1 -AED 5,000,000 -AED 10,000,000 2 3 4 5 6 7 8 9 Year 10

Payback Time:
The Payback time will be six years as shown by the cumulative cash return diagram.

Return on Investment (ROI):

( )

ROI = 46.84%

As per the ROI and all other calculations, we can conclude that the scrap metal business specifically the recycling and recovery of white good is practical and yields pleasing profits. From year one to five we start of our business in Ajman and Dubai only. Then, using our market strength and strong marketing team we reach out to the other emirates, eventually covering the whole of the UAE by year 7. This gradually increases our input thus increases our profits also; over a period of 10 years we make admirable profit and more if allowed to continue.

Safety Regulations:
We here at the company consider employee safety in the very highest regard. We have implemented several safety regulations that ensure minimum risk to the employee on duty, and to minimize any possible long term health risks posed by the type of work. We have arranged possible health hazards in the categories:

During transport and collection of goods. During processing of goods. Un-avoidable circumstance.

Transport & Collection of White Goods:

The main hazards during the transport and collection of goods may be the cause possible injury during the lifting of heavy materials. Incorrect lifting of heavy weights can result in serious injury, both in the long term and the short. Following are some ways we tackle the issue: 1) Encourage workers to complain when load is too heavy. 2) Have several workers accompany the pick-up trucks 3) Have the collection crew where translucent jacket for night collections.

During Processing of Goods:

White goods recycling and processing involves working with a lot of tools and coming in contact with many hazardous substances. Below is a list of a few.

Mercury: found in fluorescent tubes (numerous applications), tilt switches (mechanical doorbells, thermostats), and flat screen monitors. Health effects include sensory impairment, dermatitis, memory loss, and muscle weakness.

Sulphur: found in lead-acid batteries. Health effects include liver damage, kidney damage, heart damage, eye and throat irritation.

BFRs: Used as flame retardants in plastics in most electronics. Health effects include impaired development of the nervous system, thyroid problems, and liver problems.

Cadmium: Found in light-sensitive resistors, corrosion-resistant alloys for marine and aviation environments, and nickel-cadmium batteries. The most common form of cadmium

is found in Nickel-cadmium rechargeable batteries. The inhalation of cadmium can cause severe damage to the lungs and is also known to cause kidney damage.[39]

Lead: solder, CRT monitor glass, lead-acid batteries, some formulations of PVC.[40] A typical 15-inch cathode ray tube may contain 1.5 pounds of lead

Beryllium oxide: filler in some thermal interface materials such as thermal grease used on heat sinks for CPUs and power transistors.

The following are some ways our company uses to reduce the hazards regarding recycling and processing: 1) Using proper safety equipment while handling electric waste: Industrial grade gloves Industrial shockproof boots Gas Masks during the de-gassing of fridges Helmets to avoid injury from falling objects

2) Making sure employees are maintaining proper posture during work so as to avoid muscular/skeletal injuries. 3) Following the safety instruction of the machinery

Unavoidable Circumstances:
Sometimes accidents are unavoidable and you only can reduce the risk of a hazard to some extent. There is also the chance of an employee falling ill during work due to several reasons: 1) Overheating and exhaustion: May occur due to workers working in close contact with the machinery. Employees are allowed to work in shifts and are encouraged to report any issues. 2) Machinery: Accidents can happen involving faulty machinery and hence our company ensures they are always in the best of order and are regularly maintained. 3) Fire/Emergency: Sometimes, accidents are unavoidable and during such events, we must be prepared. We have installed a fire safety system in case of a fire and emergency contacts are always at hand.

Sustainability:
If a product or material is environmentally, economically and socially sustainable the product can be called sustainable. By recycling white goods we conserve embodied energy and water making a contribution to the environmental sustainability. By recovery of a white good it is made economically sustainable. Recovery and Recycling of White goods provide Jobs to the less educated people to earn their living making a significant contribution to Social Sustainability. These aspects have become known as the Three Pillars of Sustainability.

Environmental Sustainability:
When recycled, white goods are either manually dismantled or mechanically shredded. Component materials are recovered and separated by material type transformed into new materials. These recycled materials are then sold to secondary markets to be used for a variety of manufacturing processes. No one wants to live next door to a landfill; Recycling conserves existing landfill space, limiting the need for additional landfills. According to the study, recycling initiatives in 2002 caused a reduction in net emission of 256,736 tonnes eCO2 and saved 4,137,260 GJ of energy. This is equivalent to about 256,736 two-storey houses full of GHG (Green House Gas) emissions, and avoiding the need for 636,501 barrels of crude oil worth about $39,463,091. Recycling uses fewer natural and virgin resources. It reduces waste and in turn, reduces litter.

Economic Sustainability:
White goods recycling make a major contribution to the economy and a healthy manufacturing sector is vital to a sustainable economy, our project is economically viable and profitable. Companies rely on recycling programs to provide the raw materials they need to make new products. Recycling and buying recycled products encourages manufacturers to produce more

recycled content products, decreasing waste, lowering our dependence on imported materials and creating a more sustainable economy. Recycling White goods help in: Saving Energy Conserving Landfill Space Preventing Global Warming Reducing Water Pollution Protecting Wildlife Preserving the Future.

All the factors make White goods Recovery and Recycling Economic Sustainable.

Social Sustainability:

The final pillar of sustainability, White goods are also socially sustainable; Our company will create jobs in the market at a time when it is seriously required. Our industry has a superb industry health and safety where people can save their money by recovering their white goods with our company instead of buying a new product. Recycling is estimated to create nearly five times as many jobs as land filling. One study reported that 103,000 jobs or 2.7 percent of all manufacturing jobs are attributed to recycling. The jobs created by recycling businesses draw from the full spectrum of the labor market (ranging from low- and semi-skilled jobs to highly skilled jobs). Materials sorters, dispatchers, truck drivers, brokers, sales representatives, process engineers, and chemists are just some of the jobs needed in the recycling industry. Recycling is actively contributing to UAEs economic vitality.

Ethics:
Starting off our company brings forward some ethical concerns, which must be handled to protect the integrity of our company. Such concerns include anything from a small incident involving an employee, to a larger issue such as fraud or illicit activities by the company itself. Our company must prove itself to be reliable and maintain a professional reputation. To achieve this, certain steps are taken by us, which include: When dealing with suppliers, we must ensure we do not associate ourselves with the wrong sort of businesses. This can include companies which use child labor, underpay their staff, or ignore basic health and safety measures to ensure their employees well being. Before creating any business tie-ups, we conduct a scrupulous background check of the potential partner. Our company puts our employees through a training course as well as educates them about our code of conduct. Prior to this we also conduct background checks on employees, looking for any past offenses and criminal records. Besides that however, we will not be bias or discriminate towards anyone when it comes to hiring. Treating our employees well and ensuring their satisfaction is also important. A team is only as strong as its weakest member, and ensuring everyone is happy will in turn help our business flourish. This can be achieved by providing incentives like allowances, commission, etc. Since we are a recycling company, dealing with waste comes into play quite often. Dealing with this waste ethically is important, even if it means extra cost. This would mean using manual labor to separate the waste (such as plastic and other materials we dont deal with) and either selling it off or disposing of it correctly. A separate office will be created, to deal with feedback from our employees as well as any complaints, etc. This would prevent any displeasure in the workplace before they occur, as well as facilitate a healthy working environment.

Being ethical can be beneficial for our company in many ways. Doing so not only saves us from any future predicaments, but also sustains our relationships with our clients. The most important

product can be said to be the image we send out to our competitors as well as our customers. If we can earn a reputation for being honorable and respectable, it would encourage our clients to keep coming back, keep our employees happy, as well as reduce our competition and encourage new customers to come our way. The cost of being ethical is by far outweighed by the benefits we reap and hence going out of our way to implement it is worth the effort.

Risks:
Besides the physical risks involved with starting a company, many aspects that could possibly harm our business also arise. These risks vary from their probability to severity, but nevertheless must be tackled or at least acknowledged before/once we start our company. In no particular order these include the following: Once every few months, our machines have to be serviced. At this point of time, depending on the time it takes to properly service it, it wont be possible to work with these machines at this time, so that means that no separation of metals will happen and so lesser product is made. When dealing with fixing of white goods, there is always the off chance that a technician makes an error or mistake, or something goes wrong. This could mean we would have to pay for the mistake, literally in terms of money and metaphorically in terms of loosing valued customers. There is the possibility of us not being able to collect enough white goods to recycle. This would mean idle workers being paid, unused machinery gathering dust and no product produced. While selling our product, the risk of competition is always present, so marketing our product well is important. These risks are all generalized, mostly being minor but some having the potential to be devastating. Steps can be taken to prevent them, though most are too unpredictable and random to do so.

Law:
In the U.A.E. there are certain rules and regulations which must be met before and while running a business. First off, our company has to be properly licensed, by getting permission from the ministry of finance and the Ajman Chamber of Commerce and Industry. By Federal Law No.13 of 1988 and Federal Law No.8 of 1984, it is conditional that nationals must own shares of at least 51% of a company, while we may retain the remaining 49%. We must also consider zoning. Since we are an industrial company, we must be law only set up our business in an industrial site. Lastly, we may at some point in the near future have tie-ups with other companies. At this point of time they may have access to private information, and so we have to consider having them sign non-disclosure agreements as a general precaution.

Marketing:
Aim:
The overall aim of our company is to provide a better future for the future generation. To help the consumer live in a better environment. So as to achieve this we are using different means of marketing such as social marketing, internet, etc we hope to reach out to the different segments of consumers. Once we reach the level of popularity our business will flourish through word of mouth.

Target Market:
Our company is divided into 2 sections: 1. Recycling 2. Recovery

Recycling:
In the recycling processes of white goods, such as refrigerators, microwaves, basic household items, we break them down into simpler components, these materials are recovered and separated by material type and recycled into finished items such as Aluminum, steel, iron, plastic etc. These items are supplied to various factories within UAE that use them in the manufacture of their goods.

Recovery:
White goods after a period of time will face technical problems and would definitely need repair. This is when we come into role play. Consumers with household appliances such as refrigerators, oven, microwaves, etc are our main target customers.

Marketing Plan:
Some of the major factors that must be considered while developing a marketing plan are supply, demand, and quality, sustainability, handling costs, transportation costs and general economy. The 7 Ps of the marketing plan are: 1) Product 2) Price 3) Place 4) Promotion 5) People 6) Processes 7) Physical environment.

Product:
Under the recycling segment, the company is focusing on white goods. White goods are a term used to refer to large household appliances and generally includes: refrigerators, freezers,

ranges, dishwashers, washing machines. Etc. The single largest material component of white goods is steel. They also contain other ferrous and non ferrous metals. The items are extracted from the appliances converted into a solid product form so that they can be sold in the market. In the recycling/repairing segment, we again focus on white goods that are mentioned above. Under extreme conditions if the goods arent repairable we take them in for recycling, giving the customer 6% of the current value of the goods.

Pricing:
Repair/Recovery:
In General the Testing /repair of white goods are 25AED per unit. But they would be Additional fee for spare units. In case of Freon removal from the compression units the charge would b 95AED per unit. Also if the costumers want our service from door to door then there would be transportation charges, 30 AED per trip.

Recycling:
After recycling the white goods the final products are to be sold to the various factories, companies that require these metals to manufacture their product. These products have fixed quantity and amount as mentioned above.

Place:
Place means where the business will be located. The location of the business is very important for manufacturers. Location our business is located in Ajman The land rates are comparably cheaper. The place is located near to the scrap yards. Also it is also equally distanced from most of the emirates which will benefit us in the transportation field.

Promotion:
Recycling of white Goods is almost new in UAE therefore various kinds of promotion methods have to b involved so that our business can flourish. Community mobilization It simply means to create awareness. As recycling of white goods an almost new to the crowd in UAE we would need make sure that majority of the people are made aware of the fact that white goods can be recycled. Holding seminars, workshops, meetings, etc would help to send a direct message to the target group. But such methods can also b expensive and participants might not be of large number. Advertising This is the most common way to spread the name of the business. The ways we are planning to reach out to our customers are by Advertising in the press, radio, and television. Also, Online marketing via a dedicated website or search engine adds. Sales promotion Word of mouth is one form of publicity. We have salesman who would go door to door spreading the various needs for recycling and also how it would benefit them. Also spreading the news in schools, colleges, workplaces, etc.

People:
In our company we need both skilled and unskilled laborers Skilled supervisors, accountants, technicians, PRO officers, drivers, forklift drivers, receptionists. Unskilled cleaners, collectors, guards, etc.

Processes:
By processes we mean the process of collection and distribution of items. We have vehicles that are special built for the transportation of white goods. Our major collection areas will b the scrap yards and also from private houses. If the customer needs transportation service we will charge the customer with a minimal transportation fee.

Human Resources Management:

The main strength of any company is its workforce. The same applies to our company as well. Providing a good Salary package is essential in ensuring that operations run smoothly. Since we deal in recycling of White goods, the potential hazards of dealing with hazardous materials shouldnt be taken lightly. To avoid unwanted mishaps, we have put forward a set of safety guidelines that must be strictly enforced. The following table outlines the salary details of people we are employing: Employee Type Unskilled Labour Supervisor Accountant Receptionist P.R.O. Officer Technicians Drivers Forklift Drivers Total Visa & Labour Costs: Type Quota Labour Card Fee* Labour Card Typing Visa Fee* Visa Typing Visa Stamp Bank Deposit Entry Permit Medical Fee Tasheel Total
* Total amount plus AED 35 fees.

No. of Employees 12 2 1 1 1 10 8 2 37

Salary Per Person 1,200 3,500 3,500 2,000 5,000 3,000 2,200 2,000 22,400

Total Salary 14,400 7,000 3,500 2,000 5,000 30,000 17,600 4,000 83,500

No. of Employees 37 37 37 37 37 37 37 37 37

Unit Cost 20 200 35 2,000 35 415 3,000 215 590 15

Total Cost 20 7,435 1,295 74,035 1,295 15,355 111,000 7,955 21,830 555 210,435

Conclusion:

References:
http://www.arcon-environmental.ru/applications/50/ http://greenupgrader.com/2613/panasonics-metec-a-technological-recycling-center/ http://www.erdwich.eu/english/zerkleinerungsanlagen.php http://www.worldscrap.com/ http://www.scrapmetaljunkies.com