Waste Management business opportunity in India
Waste is part of our daily routine life. On daily basis tons of wastage is generated and disposed of.
But in today’s rapid growth recycling is an important part. With the use of new techniques, waste management companies are lifting strongly in the market. This business is not only acknowledged commercially but also socially.
The waste management industry has a large number of opportunities for growth. Thus, aspiring entrepreneurs should plan a waste management business often. Like other businesses, the waste management business also contributes to society with the rising population resources are required to fulfill the needs.
There might be many questions raising in your mind like does this business have any scope?
How to start the business? Is it profitable? What are the sources required for this business?
So sit, relax and read with a fresh mind. Here are the answers to all your questions.
What should be your starting point?
In any business, it is really important to know the sources. As for this business you really need to prioritize the segment as there are numerous options to select. You really need to know for which industry you want to plan your waste management business.
- Toxic waste disposal
- Nuclear waste
- Construction waste
- Green waste
- Industrial waste
- Chemical waste
- Medical waste disposal (inclusive of recycling needles, chemicals, medical gadgets and so and many more)
- Electronic waste disposal (inclusive of using CDs, computer parts and mobile, headphone, telephones and many more)
- You can prefer green waste management as green waste can be collected from the municipality and can be converted into consumer goods.
- Generally, hazardous waste is better managed in India than municipal solid wastes because the companies which generate hazardous wastes are mandated to treat their waste and will be fined heavily if they don’t.
- There are perks for industries to send them to proper treatment and disposal facilities. This means there is a market and that you could make money by being in this business. It also means there are existing mates.
This recycle/ compost can help you fulfill the growing demand for fertilizers, soil improvement products.
In fact, this is human waste which contains high nutrition value and gives tough competition to chemical fertilizers.
Invest the best:
- This is really a vast business, so of course, it requires a high amount of investment. And yes, you cannot forget that this business requires technology and human labor both effectively. Apart from this you also require a prominent location as you set up a plant.
- You really need to analyze the investment and work accordingly. As market plans for both direct and indirect costs.
- This business requires labor, location, raw material, equipment and so on. It totally depends how much do you need to invest but you have to be prepared with lump-sum investment. Now it depends on you whether you want to go for rental or own it.
Way to your investment: If there is high saving and lump sum capital to invest than this is good enough. But if you require a high amount of investment you can prefer loans as there are many leading institutions that can provide business loans. You can opt for bank loans, government schemes and non-government schemes credit schemes. With a credit amount, you can start your business eventually.
Profit ratio in India
As per market research in India, waste management employs nearly 1.75 million people and contributes around 2 percent to GDP.
For India, recycling has the potential to create six times more jobs and generate around ₹14-lac crore of additional cost savings by 2030, which is approximately 11 percent of our annual GDP.
According to a CPCB report, in 2014-15, 91 percent of solid waste was collected, of which, only 27 percent was treated and the remaining 73 percent was disposed at dumpsites.
A recent study indicates that India would need a landfill of 88 sq. km, nearly the size of Bangalore, to dump all its waste by 2030.
As our material consumption is expected to triple by 2025, recycling offers a viable and sustainable domestic option for meeting the country’s growing material demand.
Revolution is required to raise the quality of economic growth from the depletive ‘produce-consume-dispose’ led linear economy to a ‘reduce-recover-reuse-recycle-redesign-remanufacture’ led circular economy which is more regenerative and restorative in nature.
Location is must:
- Like any other business, this business also depends upon the proximity to raw materials, and the same with this business.
- The location is majorly focused and planned to be with the connectivity of customers and raw materials. And if it’s not possible, you need to create a network structure for your customer.
- Location plays a really important role in your business plan as customers really require quick services and that’s where you built your customer relationship.
- The location of the business is often very important for manufacturers especially proximity to the raw materials.
- Sometimes, like in the case of a waste recycling business, the manufacturer needs to be located at a place that is near the raw materials.
Technology and Equipment:
- There are many technologies and equipment that play a role in the waste management business. As it totally depends upon the field chosen by you.
- With the changing generation, technology is also being upgraded. For waste management businesses like plastic, disposables, electronics you require the use of technology.
- It is not necessary that you have to buy the equipment you can rent it for an agreed period. By leasing the equipment you can save the costing of your start-up.
- In the long term, leasing is an expensive way to get access to equipment. Over time you will pay more to lease the equipment than it would have cost you to buy it.
- The advantage is that you do not have to get any start-up capital for the investment.
- If you decide to lease equipment you will not have to calculate any capital investment for equipment but add the lease payment to the required working capital.
Pricing an essential part of your business as this is the key to your profit. So to set your price you have to:
- Know your cost
- Know the market price and return price of your competitors. You should be clear about your charges.
- Evaluate market, how much customers are willing to pay
- Evaluate your decided price and what discount you can offer. Or willing to give any credit to your clients.
Sales Forecast and promotion
- Marketing is really important in any business as if you are not able to represent in the market you will not be able to sell it out.
- Creating awareness through images, brochures, flyers, can create your name in market smoothly.
- Going for videos, posts, blogs and social media marketing can also be countable in your marketing strategy.
- To grow in any market you should know your customers well and what kind of demand they put. So for knowing, what they expect from you building relationships is important.
- It is a must to win the trust of your customers by providing them the eco-friendly environment and valuable services
- community to accept accumulating and separating waste, especially paper.
- And by building a good relationship they’ll be able to take your suggestions.
- It is good to continue dealing with more waste suppliers and losing none.
- It is necessary to target the community to accept a small token for their waste instead of selling to bigger companies.
Legal and registration
- You need to register your business like any other business in India. You can register as sole proprietor or you can go for LLP or Pvt. Ltd. As well, in addition to registering a limited company, you will need a license to run your business, to register for GST.
- If your business has employees you should probably register for income tax. Different local authorities depending on the type of business issue these licenses.
- For instance, municipalities and the Ministry of Health. You need to register for the company’s PAN Card also. You can go, online as well as offline registration.
Know your competitors:
Like any other market, this business also holds the competition. You should have the knowledge of the keen areas of your business.
Keep your guard up and get knowledge about the changing market strategies and trending technologies as in any business you need to go with the market trend.
Price evaluation adjustment has to be done according to the market demand. You need to know the competitive price and market price through which you can get the profit.
Every business requires proper planning and execution. It is really important for you to analyze your market and target audience. So make a marketing plan, calculate the start-up capital you need. Secure your financial status.
This article will help you to understand the waste management business with more clarity. Comment and let us know how useful was this article to you.