Project on Consumer Material - Scrap Industry

Description
Scrap is a term used to describe recyclable materials left over from every manner of product consumption, such as parts of vehicles, building supplies, and surplus materials. Often confused with waste, scrap in fact has significant monetary value.

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CHAPTER: 1
RESEARCH
METHODOLOGY


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1.1 Research problem:
Scrap industry is all about the use of post industrial and post consumer material in order to
transfer such kind of goods in the useable form. scrap industry can be divided in to two parts
1.) Post industrial scrap and 2.) Consumer material scrap. Post industrial scrap includes all the
types of scrap remaining after the production of products. Where In, consumer material scrap
includes all type of use and throws products. The focus of the project is on Consumer material
scrap.
Therefore, the statement of the problem would be,
1. How can the levels of channel management be reduced?
2. How can an Integrated Scrap Management System can be developed?

1.2 Research objectives

Macro
? To identify the factors affecting unorganized scrap industry
Structure.
? To understand the channel management process of the Plastic scrap industry.
Micro
? To understand the process of recycling for post consumer materials for the manufacturing of
several products.
? To devise Integrated Scrap Management System with minimum channel levels.


3




1.3 Research Design.
? The research will be exploratory followed by descriptive because the entire project is
based on questionnaire and analysis so that the detailed description will be there in the
project, so this will be descriptive design.
? The nature of the study is statistical pertaining actual environmental conditions (field
conditions).The reason for choosing this type of data is, qualitative research provides
insights and understanding of problem setting while quantitative research seeks to quantify
the data and typically applies some form of statistical analysis.


1.4 Research Methodology
.
? SAMPLE UNIT

1. household who are disposing scraps
2. Wholesalers and industrial recyclers involved in scrap business.

? SAMPLE SIZE

Total Sample size: 200

? Households: 100
? Wholesalers: 50
? Industrial recyclers: 50

4


? SAMPLING TECHNIQUE

The sampling method used will be Non probability convenience sampling because the
respondents chosen for filling the questionnaire will be chosen conveniently from
Ahmedabad.

? CONTACT METHOD
The contact method that will be used to collect the data is filling questionnaire by visiting
the respondents personally. With the use of this method, the researcher can have the
opportunity of having one to one interaction with the respondents so that maximum possible
information can be extracted with formal as well as informal talks to optimally satisfy the
objective of the research.

1.5 Data sources
1) Primary Sources:

This data include both qualitative and quantitative data. Data are generated through interaction
with households, wholesalers and industrial recyclers by using questionnaire as a research
instrument.
? Research Approach:
Survey Method
? Research Instrument:
Questionnaire
? Types of Questionnaire:
Structured non-disguised
? Type of Questions:
5

Open-ended and Close-ended questions


2) Secondary Sources:
This data will be collected from journals, internet, reports and
Industrial publications.
1.6 Data Processing:
A number of tables and charts to be prepared to bring out the
Main characteristics of India.

1.7 Hypothesis:
Hypothesis: 1
H
0
: There is no significant dependence between income level and preference towards integrated
scrap management system.
H
1
: There is significant dependence between income level and preference towards integrated scrap
management system.

Hypothesis: 2
H
0
: There is no significant dependence between education level and preference towards
integrated scrap management system.
H
1
: There is significant dependence between education level and preference towards integrated scrap
management system.
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1.8 Analysis and Findings
? Method of data analysis
? Method of data reporting

1.9 Limitations:
? The research is subject to Ahmedabad city only.
? The Scrap material verticals involved in research is paper, plastic, steel and iron which are
mainly used in households.
? The research is based on post consumed scrap (consumer material scrap) and does not cover
industrial scrap.






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CHAPTER: 2
INDUSTRY PROFILE





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2.1 INTRODUCTION TO SCRAP INDUSTRY
Scrap is a term used to describe recyclable materials left over from every manner of product consumption,
such as parts of vehicles, building supplies, and surplus materials. Often confused with waste, scrap in fact
has significant monetary value. Overall, the scrap industry processes more than 145,000,000 short tons
(129,464,286 long tons; 131,541,787) of recyclable material each year into raw material feedstock for
industrial manufacturing around the world.
The scarp industry is booming and it is a massive industry like steel industry. Most of scrap is recovered
from old electric scrap, electronic equipment including computers, military equipment, jewelry etc. Scrap
industry also covers the major recyclable materials, from metals to plastics, paper and pulp, rubber and
glass.

The use of scrap instead of virgin ore has several advantages, significantly in energy savings. If one of the
attractions of ferrous and nonferrous scrap is in energy savings, the other being price levels that are
particularly attractive.

Not only the steel industry is large, but other base metals are also promising. In fact, around 40% of the
world's need for copper is provided for by scrap. Using scrap not only reduces air pollution and water use,
it also conserves natural resources. The greatest environmental benefit from using scrap, instead of virgin
ore, is the reduction in greenhouse emissions. Recycling metals saves new energy use by the mining
industry.

Whether or not base metal, there will always be a need for scrap metal. With energy looking to remain
costly and concern for our environment set only to increase, scrap industry continue to remain crucial for
almost all industries.

Scrap includes many things which are used and the waste of that used items is called as scrap. Considering
the current ecological problems, the need for the recycling process development is


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Must for energy saving as well as for the protection of the environment. Scrap includes Plastic waste, paper
waste, steel and iron waste, electronic waste, biomedical waste, copper waste and many more such kind of
verticals.

Generally scarp can be divided in to two parts.
1. Post Industrial scrap
2. Consumer Material scrap.
Post industrial scrap includes industrial waste such as copper, steel, iron etc. where in consumer material
scrap includes the waste remained after the consumption of the particular material by the consumers.

In India scrap industry is still in nascent age and there are many opportunities lied in the Indian scrap
industry. Properly organized model of integrated waste Management system can explore the new
opportunities for the Indian scrap industry.

In India following types of scrap is recycled,

1. Metal scrap ( All kind of Metals)
2. Glass scrap (All kind of glasses)
3. Plastic scrap(All kind of plastic)
4. Paper scrap
5. Wooden scrap
6. Electronic scrap (computer, battery etc.)

The fundamental problem in the recycling is not having much of the scrap due to the improper network of
the scrap collection and that‘s why lots of waste is not converted in to the reusable form and scarp has to be
exported from the foreign countries which affects the economy at large.

Though the recent government polices and need for environment friendly products the scrap and recycling
market of India is going to boom like anything and immense opportunity is there for the growth of the
nation and doing best out of the waste.

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2.2 HISTORY OF SCRAP INDUSTRY
From the days of primitive society humans and animals have used the resources of the earth to support and
to dispose of wastes. Problems with disposal of wastes can be traced from the time when humans first
began to congregate in tribes, villages, and communities and the accumulation of wastes became a
consequence of life. In most developing countries, the practice of throwing wastes in the streets, roadways,
and vacant lands led to the breeding of rats, with their attendant fleas carrying the germs of disease, and the
outbreak of plague. The lack of any plan for the management of solid waste, leads to the epidemic of
plague.
A waste picker, recycler, binner, informal resource recoverer, or a scavenger, is a person who picks out
recyclable elements from mixed waste wherever it may be temporarily accessible or disposed of. A person
who scavenges for junk, food, materials, or other items is also referred to as a scavenger.
The socioeconomic conditions prevalent in Third World cities differ markedly from those in industrialized
countries. Third World cities are experiencing rapid urbanization brought about by fast population growth,
as well as high immigration rates. Urbanization often takes place as the expansion or creation of new slum
areas and squatter settlements. Typically, these settlements grow organically and lack any planning,
resulting in twisting and narrow streets, as well as in the occupation of environmentally sensitive and
disaster-prone areas, such as wetlands, river beds, creeks, ?ooding plains, and steep slopes.
The physical characteristics of Third World cities, their rapid expansion, and the lack of resources to
provide them with the necessary infrastructure and urban services translate into an insufficient collection of
the wastes generated, as well as their improper disposal on the streets, vacant lots and in municipal open
dumps. Most Third World cities do not collect the totality of wastes they generate. Despite spending 30 –
50% of their operational budgets on waste management, Third World cities collect only between 50 and
80% of the refuse generated.
Low-income neighborhoods, slums, and squatter settlements constitute the areas where municipal
collection of wastes often does not exist. Residents of areas without refuse collection

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May resort to dumping their garbage in the nearest vacant lot, river, or simply burn it in their backyards.
The improper disposal of solid wastes constitutes a source of land, air and water pollution, and poses risks
to human health and the environment. Third World cities, preoccupied with extending waste collection and
with improving final disposal, generally lack recycling programs.


Picture: 1

Picture: 2
[RAG PICKER IN GARBAGE AND SORTING OF SCRAP]

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Recycling has been a common practice for most of human history, with recorded advocates as far back as
Plato in 400 BC. During periods when resources were scarce, archaeological studies of ancient waste
dumps show less household waste (such as ash, broken tools and pottery)—implying more waste was being
recycled in the absence of new material.
In pre-industrial times, there is evidence of scrap bronze and other metals being collected in Europe and
melted down for perpetual reuse. In Britain dust and ash from wood and coal fires was collected by
'dustmen' and down cycled as a base material used in brick making. The main driver for these types of
recycling was the economic advantage of obtaining recycled feedstock instead of acquiring virgin material,
as well as a lack of public waste removal in ever more densely populated areas.
In India scrap industry has its place since the Indus valley civilization. The profession based working
system of earlier civilization there was place for scrap business and waste management system.











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2.3 RECYCLING OF SCRAP
Recycling involves processing used materials into new products to prevent waste of potentially useful
materials, reduce the consumption of fresh raw materials, reduce energy usage, reduce air pollution (from
incineration) and water pollution (from land filling) by reducing the need for "conventional" waste
disposal, and lower greenhouse gas emissions as compared to virgin production. Recycling is a key
component of modern waste reduction and is the third component of the "Reduce, Reuse, and Recycle"
waste hierarchy.
Recyclable materials include many kinds of glass, paper, metal, plastic, textiles, and electronics. Although
similar in effect, the composting or other reuse of biodegradable waste – such as food or garden waste – is
not typically considered recycling. Materials to be recycled are either brought to a collection center or
picked up from the curbside, then sorted, cleaned, and reprocessed into new materials bound for
manufacturing.
In a strict sense, recycling of a material would produce a fresh supply of the same material, for example
used office paper to more office paper, or used foamed polystyrene to more polystyrene. However, this is
often difficult or too expensive (compared with producing the same product from raw materials or other
sources), so "recycling" of many products or materials involve their reuse in producing different materials
(e.g., paperboard) instead. Another form of recycling is the salvage of certain materials from complex
products, either due to their intrinsic value (e.g., lead from car batteries, or gold from computer
components), or due to their hazardous nature (e.g., removal and reuse of mercury from various items).
Critics dispute the net economic and environmental benefits of recycling over its costs, and suggest that
proponents of recycling often make matters worse and suffer from confirmation bias. Specifically, critics
argue that the costs and energy used in collection and transportation detract from (and outweigh) the costs
and energy saved in the production process; also that the jobs produced by the recycling industry can be a
poor trade for the jobs lost in logging, mining, and other industries associated with virgin production; and
that materials such as paper pulp can
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only be recycled a few times before material degradation prevents further recycling. Proponents of
recycling dispute each of these claims, and the validity of arguments from both sides has led to enduring
controversy
Rethinking Waste
The 3Rs are categories at the top of our disposal options. They include a variety of initiatives for disposing
of discards. Generally, options lowest on the list are least desirable.


Picture: 3 Picture: 4
[IMPORTANCE OF 3R FOR OUR EARTH]
Reduce - to buy less and use less. Incorporates common sense ideas like turning off the lights, rain barrels,
and taking shorter showers, but also plays a part in Composting/Grass cycling (transportation energy is
reduced), low-flow toilets, and programmable thermostats. Includes the terms Re-think, Recycle, Carpool,
Efficient, and Environmental Footprint/Footprint.
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Reuse - elements of the discarded item are used again. Initiatives include Hand-Me-Downs, Garage Sales,
Quilting, and Composting (nutrients). Includes the terms Repair, Regift, and Up cycle.
Recycle - discards are separated into materials that may be incorporated into new products. This is
different from Reuse in that energy is used to change the physical properties of the material. Initiatives
include Composting, Beverage Container Deposits and buying products with a high content of post-
consumer material.

Legislation in Recycling:
Legislation has also been used to increase and maintain a demand for recycled materials. Four methods of
such legislation exist: minimum recycled content mandates, utilization rates, and procurement policies,
recycled product labeling.
Both minimum recycled content mandates and utilization rates increase demand directly by forcing
manufacturers to include recycling in their operations. Content mandates specify that a certain percentage
of a new product must consist of recycled material. Utilization rates are a more flexible option: industries
are permitted to meet the recycling targets at any point of their operation or even contract recycling out in
exchange for tradable credits. Opponents to both of these methods point to the large increase in reporting
requirements they impose, and claim that they rob industry of necessary flexibility.
Governments have used their own purchasing power to increase recycling demand through what are called
"procurement policies". These policies are either "set-asides", which earmark a certain amount of spending
solely towards recycled products, or "price preference" programs which provide a larger budget when
recycled items are purchased. Additional regulations can target specific cases: in India, for example, the
Environmental Protection Agency mandates the purchase of oil, paper, tires and building insulation from
recycled or re-refined sources whenever possible.

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The final government regulation towards increased demand is recycled product labeling. When producers
are required to label their packaging with amount of recycled material in the product (including the
packaging), consumers are better able to make educated choices. Consumers with sufficient buying power
can then choose more environmentally conscious options, prompt producers to increase the amount of
recycled material in their products, and indirectly increase demand. Standardized recycling labeling can
also have a positive effect on supply of recyclates if the labeling includes information on how and where
the product can be recycled.









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2.4 ADVANTAGES OF RECYCLING
Recycling is one of the most rapidly and successfully evolving procedures of environmental conservation.
In fact, it is among the most talked about issue these days and the increasing number of people is
participating in recycling waste in varied ways. People have realized the importance to save the
environment and thus they are trying their ever best possible move to use the items that are waste for them
now in alternative ways. Recyclable products like glass, metal, paper and plastics are thus collected and
then transported to the concerned facilities for converting them in finished products of alternative use.
The benefits of recycling go far beyond the materials we keep out of the landfill. Overall, recycling can:
? Conserve resources for the future.
? Prevent emissions of many greenhouse gases and water pollutants.
? Save energy.
? Supply valuable raw materials to industry.
? Create jobs.
? Stimulate the development of greener technologies.
? Reduce the need for new landfills and incinerators.
Recycling aids in conserving the resources available for the future generations to come. It is because when
the current generation utilizes the resources more efficiently by reusing them and converting them into
newer products, they are saving the consumptions of the natural resources which will be thus rendered
available for the generations to come. Another great advantage of recycling is that it largely prevents
emission of the greenhouse gases like carbon dioxide into the atmosphere. The industrial processes that are
involved in the manufacturing of different products often release these toxic greenhouses gases that can be
well reduced by recycling.
Greenhouses gases usually affect ozone layer the most and deplete it decreasing its ability of blocking
ultraviolet rays coming from the sun. As with recycling the emission of such gases is controlled and
thereby there is lesser pollution. One great benefit is also this that it helps in conserving a lot of energy
resources like petroleum and coal deposits.
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What is interesting is that the by products of recycling are potent raw materials to be used in various
manufacturing industries. Usually raw materials were obtained from the natural resources, but as after
recycling the end-products can be put to use as well, it is like a double advantage. The only thing that needs
to be bothered about is the immense potential that is invested in the recycling process as there is abundant
labor, assembling, and transportation and breaking down involved in it. But that also means there are
increased job opportunities as well.
The best advantage of recycling is that it helps in increasing an eco-friendly and greener environment. It is
a very healthy solution to reduce pollution and promote healthy living.
Some basic facts about recycling:

Conserving Resources
? Every ton of paper recycled a year saves 17 trees and 7000 gallons of water.
? Every ton of steel recycled saves 2,500 pounds of iron ore, 1,400 pounds of coal, and 120 pounds of
limestone.
? Recycling one ton of glass saves the equivalent of 10 gallons of oil.
Reducing Pollution
? According to the U.S. EPA, methane is the second largest source of greenhouse gas in the
atmosphere, and landfills account for 37% of methane gas output. By reducing and recycling
properly organic materials, including paper, we can divert them from landfill, thereby reducing
anaerobic decomposition and the production of methane gas.
Energy Savings
? Recycling one aluminum can saves enough energy to run a TV for three hours.
? The recycling of one glass container saves enough energy to light a 100-watt bulb for 4 hours.

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2.5 LIMITATIONS

Some limitations in scrap collection recycling are there in India and that is why some times scrap is
imported from the developed countries. Only 2 billion tons of scrap out of 8.5 billion tons are recycled and
about 6.5 billion tons of consumed scrap goes in to waste and not used for the further recycling.
Limitations to recycling are:
1) Lack of knowledge about recycling and its benefits.
2) Inability to collect from diverse and remote sites, and
3) Virgin material prices in the open market affects recycled material prices.
4) Lack of technological know how and technological processes.
5) Improper waste management systems lead to the less recyclable raw material and higher cost.
6) The rules and regulations of the government are not so much strictly implemented and hence the post
consumed material turns in to no recyclable form.
So, these are the all limitations due to which the scrap and recycling industry in India is not developed in so
much full-fledged way.







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CHAPTER: 3
INDUSTRY ANALYSIS










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3.1 SWOT ANALYSIS OF SCRAP INDUSTRY

SWOT analysis is the tool for analyzing micro environment and is very important in order to know the
different aspects of the industry. SWOT analysis checks STRENGTH, WEAKNESS, OPPORTUNITY
and THREATS to the industry. All these aspects have deep impact on any industry in the market.
As the scrap industry is less developed it is necessary to analyze its micro environment, so here the
SWOT of the industry is done.

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1. STRENGTHS
1. Energy saving.
2. Environmental Friendly.
3. Cost Effective
4. Reusable.
5. Employment to Lower level people.
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2. WEAKNESS
1. Lack of Awareness.
2. Improper channel Management.
3. Lack of Integrated Scrap Management System.
4. Missing of Post consumed items.

3. OPPORTUNITIES
1. Opportunity to make it well organized.
2. Development of Integrated Scrap Management System.
3. Opportunity for entrepreneurship.
4. Opportunity for employment Generation.


4. THREATS
1. Illiteracy of People.
2. Environmental polices.
3. Less Demand due to quality.
4. Import of scrap from foreign.
5. Theft of Scrap.

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So, this is the SWOT analysis of the scrap industry, which is very essential to understand the mechanism of
the industry.















CHAPTER: 4
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ANALYSIS OF
QUESTIONNAIRE



4.1 HOUSEHOLD QUESTIONNAIRE
? GENERAL INFORMATION

*GENDER
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INTERPRETATION:
We conducted our research activities on Sundays and holidays because on those days we can find them at
home. So, we can talk with them in depth and can get positive response. From the above pie chart we can
see that there was 33% of female and 67% of male candidates were responded.

*FAMILY INCOME LEVEL
Male
67%
Female
33%
GENDER
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INTERPRETATION:
Here our assumption is that educated people can understand the value, usage and importance of scrap
management and recycling process. So, we have taken upper middle class whose income is ten thousand
and above. From the above chart we can see that 15% of respondents are fall in the income level of 10000
to 20000. 36%, 22%, 13%, 14% people are fall in to 20000 to 30000, 30000 to 40000, 40000 to 50000 and
more than 50000 respectively.

* EDUCATION LEVEL
less than 10000
0%
10000 to 20000
15%
20000 to 30000
36%
30000 to 40000
22%
40000 to 50000
13%
More than 50000
14%
FAMILY INCOME LEVEL
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INTERPRETATION:
Here the highest percentage of respondents is Graduate i.e. 48% and post graduate i.e. 37%. It shows that
educated people are more keen towards waste management and ready to accept the way of recycle of
waste. While, 12% of respondents who are diploma in various field are also to adopt recycle the waste
because of their technical and scientific knowledge. Finally 3% of doctorates respondent also give positive
response and their views were ?There must be a proper disposal of waste but there isn‘t?.

1. How often do you sell your scrap like Waste news papers, plastic bottles and steel scrap etc.?
Non metric
0%
Metric
0%
Diploma
12%
Graducation
48%
Post Graduation
37%
Doctorate
3%
EDUCATION LEVEL
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INTERPRETATION:
People are aware about the effect of throwing scrap here and there and already used to store scrap for a
month and than send it at a proper place. That shows from the response of respondents, the proof we can
see from the above pie chart that 91% of respondents are sell scrap once in a month rather to dispose off.
While, 7% 0f respondents are sell scrap once in six months and the lowest respondents sell scrap
fortnightly.

Weekly
0%
Fortnightly
2%
Once a month
91%
Every six months
7%
Others
0%
SCARP SELLING FREQUENCY
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2. How much scrap do you sell at one time? (News paper waste, Plastic waste, Iron waste etc.)


INTERPRETATION:
As we have seen that highest numbers of respondents are sell scrap monthly, the highest percentage of
quantity of scrap is 1-2 kg. i.e. 63%. It means people are ready to dispose scrap systematically and they do,
but there is a need for systematic scrap collection. Also we can see that only 19% and 18% of respondents
are sell scrap 3-5 and 6-8 kg. Respectively. Respondents do not tend to store more than almost 8 kg. Of
scrap.

1-2 Kg
63%
3-5 Kg
19%
6-8 Kg
18%
8-10 Kg
0%
More than 10 Kg
0%
QUANTITY
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3. Would you prefer a more frequent waste collection service?


INTERPRETATION:
From the above pie chart we can see that respondents want more frequency in service of scrap collection.
93% of respondents are giving preference for more frequent waste collection service. Only 4% of
respondents don‘t give their preference towards more frequent waste collection service, they are the
respondents who are store more than 6 kg. Scrap and 3% respondents are hold with neutral for their
preference towards more frequent waste collection service.

Yes
93%
No
4%
Don't Know
3%
SERVICE FREQUENCY PREFERENCE
32

4. Generally to whom do you sell your waste/scrap?



INTERPRETATION:
From the above chart we came to know that almost respondents sell their scrap to rag pickers. 96% of
respondents sell their scrap to rag pickers because they give very frequent service at their home. Actually
wholesalers send them for collection of scrap on commission base. We also can see that only 3% of people
sell to the scrap dealers and 1% people sell to the others. Other includes giving free scrap to different kinds
of charity club, disposed off and so on.
Rag Pickers
96%
Scrap Dealers
3%
Wholesalers
0%
Other
1%
SCRAP SELLING
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5. In general, how satisfied are you with the waste services provided to you?



INTERPRETATION:
We can see from the above chart that the highest percentage of respondents is dissatisfied from the scrap
collection system. There are 56% of respondents are dissatisfied while only 18% of respondents are
satisfied. Also we can see that the ratio between very satisfied and very dissatisfied is varying from
satisfied to dissatisfy. It is 17% to 9%. So, finally we came to know that currently people are not satisfied
with the scrap collection; they require more reliable and frequent service. It leads to the maximum usage of
the scrap.
0%
18%
56%
9%
17%
SATISFACTION LEVEL
Very Satisfied
Satisfied
Neither satisfied nor dissatisfied
Very Dissatisfied
Don't Know
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6. What measures do you believe could be introduced most effectively to reduce the hazardous components
of household waste? Hazardous household waste includes things such as household batteries, bleach, paint
and thinners etc.



INTERPRETATION:
We are very happy to know that respondents are careful about the dispose of hazardous scrap. It shows
from the above chart that there are 87% of respondents were giving preference to the separate collection of
hazardous scrap and only 13% respondents were giving there preference to take back scheme to point of
origin and others.
Seprate Collection
87%
Take
back
scheme
to point
of origin
13%
Other
0%
MEASURES
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7. Regarding waste electrical and electronic equipment what collection frequency do you think would be
appropriate? Waste electrical and electronic equipment includes things such as an old fridge, cooker,
toaster, basically anything with a plug or battery) etc.



INTERPRETATION:
As electrical scrap is concern there is less scrap therefore people behavior tend towards the dispose of
electrical scrap as it is very hazardous. We can see from the above pie chart that 89% of respondents have
given their preference towards collection of electrical scrap annually, 7% of respondents have given their
preference for twice a year and only 4% of respondents held with neutral point.
89%
7%
0%
4%
0%
WASTE COLLECTION TIME
Annually
Twice a year
Three times a year
Don't Know
Other
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8. Please mention the price of one kilogram scrap related to your experience in column of ?PRICE/KG? in
Rupees. (Write in multiple options if applicable)


NO.


TYPE OF MATERIAL

TYPE OF SCRAP/WASTE

PRICE
/KG

1.

STEEL/IRON


In Rs.

a.

Special Steel


Nut-bolts, Screws(big-small )

25-28

b.

Steel items/iron items

Steel sheets, Steel boxes, Cup-boards,
Broken barrel etc...


25-28


2.


PLASTIC BAGS



a.

Type 01

This bags are use for packing of
calculator and other Electronic items


5


b.

Type 02

White bags, bags which are Used for
packing milk and milk
Products, washing powder


15-18
37


c.

Type 03

Different types of bags



15-18


3.


PAPER WASTE


a.

Brown Paper

Note book cover, Craft paper


5-7

b.

Hard Boards

Waste paper, Medicine boxes
Notebook cover


5-7

c.



News Paper

7-8

d.


Magazines

7-8

e.


Office record Papers

Office record papers


7-8

4.


HARD PLASTIC



a.

Type 01
Ice cream cup, Tea cup, Light weight
cup
Light waste Plastic

5
38



b.

Type 02
Shoes waste, Broken Plastic, Bottle
caps


12

c.

Type 03

Solid hard waste, Audio
Cassettes


5




[Rates are based on the price range given by the respondents]










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9. Will you prefer to use an? Integrated Scrap management System? for the collection of mixed dry
recyclable materials such as paper, cardboard, plastic and cans, irons? (Tick mark the applicable one)



INTERPRETATION:
From the above pie chart we can conclude that 88% of the respondents will prefer to use an Integrated
scrap Management System. Where in 9% of the respondents answered don‘t know and 3% of the total
respondents answered in No. so, majority of the respondents agree to use integrated scrap management
system.
Yes
88%
No
3%
Don't
Know
9%
PREFERENCE
40


10 .Who do you think should set up and manage such a facility? (Tick mark the applicable one)


INTERPRETATION:
From the above chart we can see that highest number of respondents prefer to set up and manage such a
facility by operative society followed by 38% of private individual/company, 8% respondents are don‘t
mind who ever set up and manage such a facility and 5% respondents are even don‘t interested for scrap
management.
49%
38%
8%
5%
OWNERSHIP
Operative Society
Private individual/Company
Don't Mind
Don't Know
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11. How many people live in your household? (Tick mark the applicable one)



INTERPRETATION:
Above pie chart clearly explains that most of the house holds comprises of five or more people. 61% of the
respondents answered that there are five or more members are there in their families, where in 34% of the
respondents answered for four members. The percentage of three member‘s family is 5%
0% 0%
5%
34%
61%
FAMILY MAMBERS
One
Two
Three
Four
Five or More
42

12. Please classify your house as one of the following:



INTERPRETATION:
Here majority of the houses are privately owned where in 58% of the houses are privately owned. Where in
23 % respondents replied that their houses are social housings.10% are privately ranted houses and 9%
replied in others.
58% 23%
10%
9%
HOUSE OWNERSHIP TYPE
Privately Owned
Social/Council Housing
Privately Ranted
Other
43

4.2 WHOLESALER QUESTIONNAIRE
1. Which vertical of scraps do you buy from the rag pickers/scrap dealers/others? (Tick mark multiples if
applicable)


INTERPRETATION:
From the above chart we can see that 20% paper scrap, 25% plastic and Iron scrap and 30% steel scrap is
purchase from the rag pickers by wholesalers because it all are regular and frequent used material by
households. So, it can easily collected by rag pickers.

20%
25%
25%
30%
0%
VERTICLE OF SCRAP
Paper
Plastic
Iron
Steel
Other
44

2. In what quantity do you buy the scrap from rag pickers/scrap dealers/others? (In Kg)
(Tick mark applicable one)



INTERPRETATION:
Above chart shows the quantity of scrap purchase by the wholesalers from the different sources like rag
pickers, dealers etc. It shows very clearly that 38% wholesalers purchase scrap from rag pickers or dealers
is less than 100 kg, 28%, 16% and 18% are 100-200 kg, 200-400 kg and 400-600 kg quantity of scrap
respectively.

38%
28%
16%
18%
0% 0%
QUANTITY
Less than 100 Kg
100 - 200 Kg
200 - 400 Kg
400 - 600Kg
600 - 800 Kg
800 - 1000 Kg
45

3. Do you have your own permanent rag pickers force to collect scrap from households?
(Tick mark applicable one)




INTERPRETATION:
Response of respondents towards their permanent rag pickers force to collect scrap is clearly says that there
is not proper planning and co ordination between rag pickers and wholesalers because 76% of wholesalers
has not their own rag picker force and only 24% wholesaler has. So, we can assume that there is a need of
coordination and planning for getting maximum scrap from the households and maximum utilization of
recycling industry.
Yes
24%
No
76%
RAG PICKERS FORCE
46


4. If ?YES? then how many rag pickers work for you?

* In this question respondents answered in the different figures. This ranges from 4 to 10 rag pickers
force. So, generally the force of the rag pickers of wholesaler is of 4 to 10 people.

5. If ?NO? then what is the source of scrap for you?

* Most of the wholesalers buy the scrap from individual rag pickers and Industrial scrap. Generally
individual sales the scrap to the wholesalers who pay high prices. So, this is the source of scrap. Another
thing is that some wholesalers buy scrap from the industries.












47


6. How often do you sell your scrap of your vertical(s) to the recycling firms? (Tick mark applicable one)



INTERPRETATION:
Above chart is the summary of selling stored scrap to the recycling firms by wholesalers. It shows that 48%
wholesalers sell scrap daily, 22% wholesalers sell scrap weekly, 18% wholesaler sell fortnightly and 12%
wholesaler sell scrap once a month to the recycle firms.
48%
22%
18%
12%
0%
TIME DURATION
Daily
Weekly
Fortnightly
Once a month
Other
48


7. In what quantity do you sell your scrap to recycling firms? (In Tons) (Tick mark applicable one)


INTERPRETATION:
The most important factor for measure the size of any business is the quantity of goods turnover and above
chart is for the same factor which is very crucial for the development of channel for expansion of market
and its own entity. The above chart shows that 58% wholesaler sell scrap in quantity of less than 1 ton to
the recycling firm. 34% wholesaler sell scrap 5-10 tons and 8% wholesalers sell scrap 10-15 tons quantity
to the recycling firms.
58%
34%
8%
0% 0%
QUANTITY
Less than 1 ton
1 -- 5 tons
5 -- 10 tons
10--15 tons
More than 15 tons
49

8 .What do you do for the segregation of the mix scrap?
* Majority of the respondents answered that for the Segregation of scrap they keep the workers generally
lady workers sorting out of the scrap.
9. Generally, to whom do you sell scrap in bulk? (Tick mark applicable one)


INTERPRETATION:
From the above pie chart we can see that 82% of wholesalers are sell their scrap to the Big Wholesalers and
only 18% of wholesalers are sell their scrap to the recycling firms. It means there is a more than one layers
between scrap collection and recycling firms. Ultimately it increases the price for recycling firms and
decreases the price for the households.
Big Wholesalers
82%
Recycling firms
18%
Others
0%
SCRAP SELLING
50

10. Please mention the price of one kilogram scrap related to your business in column of ?PRICE/KG? in
Rupees. (Write in multiple options if applicable)

NO.


TYPE OF MATERIAL

TYPE OF SCRAP/WASTE

PRICE
/KG

1.

STEEL/IRON


In Rs.

a.

Special Steel


Nut-bolts, Screws(big-small )

30

b.

Steel items/iron items

Steel sheets, Steel boxes, Cup-boards,
Broken barrel etc...


30


2.


PLASTIC BAGS



a.

Type 01

This bags are use for packing of
calculator and other Electronic items


8


b.

Type 02

White bags, bags which are Used for
packing milk and milk
Products, washing powder



20 to 22

c.

Type 03

Different types of bags



20 to 22
51




3.


PAPER WASTE


a.

Brown Paper

Note book cover, Craft paper


9

b.

Hard Boards

Waste paper, Medicine boxes
Notebook cover


9

c.



News Paper

9

d.


Magazines

9

e.


Office record Papers

Office record papers


9

4.


HARD PLASTIC



a.

Type 01
Ice cream cup, Tea cup, Light weight
cup
Light waste Plastic


7

b.

Type 02
Shoes waste, Broken Plastic, Bottle
caps

15
52



c.

Type 03

Solid hard waste, Audio
Cassettes


5
















53


11. Do you think quality of scrap plays important role in the Price of the scrap per kilogram?
(Tick mark applicable one)

INTERPRETATION:
It is logically accepted by the society that price and quality are interrelated. If price is high then quality
must be good and vice a versa. After all our respondents are from the society and they also has given their
response on that rule. It can be proved by the above chart. Our 90% respondents have given their
preference for the quality of scrap plays important role in the Price of the scrap per kilogram, 6% respondents
have given their response for quality does not plays important role in the Price of the scrap per kilogram and 4%
respondents says don‘t know.

Yes
90%
No
6%
Can't Say
4%
QUALITY OF SCRAP
54

12. Is credit system for payment exists in the dealings?
(Tick mark applicable one)



INTERPRETATION:
From the above chart we can see that 82% wholesalers give credit service to the rag pickers or recycling
firms. 10% wholesalers do not give credit service to the rag pickers or recycling firms and 8% wholesalers
are not ready to give their preference.
Yes
82%
No
10%
Can't Say
8%
CREDIT SYSTEM FOR PAYMENT
55


13. Who bears the transportation charges for the loading and unloading of scrap? (Tick mark applicable
one)


INTERPRETATION:
There is no any rules and regulation for the transportation charge, it is totally depends on the mutual
understanding of business partners. Here we can see that 64% respondents give there response that it
depends who will bears transportation charges. 22% respondents said recycler bears transportation charges
and 14% respondents prefer towards wholesaler bears transportation charges.
22%
14%
0%
64%
TRANSPORTATION COST
Recycler
Wholesaler
Both
Depends
56

4.3 INDUSTRIAL QUESTIONNAIRE
1. Your recycling business is concerned with which type of scrap? (Tick mark multiples if applicable)



INTERPRETATION:
Now a days Indian government has started to give more attention towards recycling process. For the
promotion of recycling government introduces different schemes like tax relaxation, loan for latest
technology etc. from the above chart we can see that 36% recycler are concern with the plastic recycling,
30% recyclers are with Iron recycling, 13% are with steel and 20% are with the paper recycling process.
20%
37%
30%
13%
0%
SCRAP RECYCLING TYPE
Paper
Plastic
Iron
Steel
Other
57


2. Which are the sources for you for procurement of inputs? (Tick mark multiples if applicable)


INTERPRETATION:
Wholesalers are playing vital role for recycling process units because from the above chart we can see that
the highst percentage i.e. 66% of recycling units procure raw material from the wholesalers, 4% recycling
units Import raw material, 26% recycling units got raw material from Industrial waste and 4% recycling
units procure from own channel.
66%
4%
26%
4%
0%
SOURCE OF INPUTS PROCUREMENT
Wholesalers
Imports
Industrial Waste
Own channels
Other
58


3. What is your daily requirement of inputs? (Tick mark the applicable one)


INTERPRETATION:
Above pie chart describe that 78% recycling units requires 1--5 tons raw material daily, 4% recycling units
require 5--10 tons raw material daily and 18% recycling units require less than 1 ton raw material daily. It
means generally 1--5 tons quantity is standard for the recycling units.
18%
78%
4%
0% 0%
INPUT REQUIREMENT
LESS THAN 1 TON
1 -- 5 TONS
5 -- 10 TONS
10 -- 15 TONS
MORE THAN 15 TONS
59


4. In what quantity do you buy inputs of your vertical(s) form your sources? (Tick mark the applicable one)

INTERPRETATION:
Above chart is the graphically presentation of quantity buying from the different verticals. It shows that
56% recycler buy 1--5 tons, 28% recycler buy 5--10 tons and 16% recycler buy less than 1 ton quantity
from different verticals.

16%
56%
28%
0%
0%
INPUT BUYING
Less than 1 Ton
1 -- 5 Tons
5 -- 10 Tons
10 --15 tons
More than 15 Tons
60

5. How often do you buy inputs of your vertical(s) for recycling? (Tick mark the applicable one)


INTERPRETATION:
From the above chart that 26% recycler buy input daily from vertical for recycling, 42% buy input weekly
for recycling, 14% buy input fortnightly and 18% buy input once a month for recycling.

26%
42%
14%
18%
0%
DURATION
Daily
Weekly
Fortnightly
Once a Month
Other
61


6. Who are initial customers of your final products?
* In the answer of this question most of the respondents replied that there products are used for the
normal customers and some of the products are specifically used by the Industrial buyers
7. Does any waste remain after the recycling process? (Tick mark the applicable one)

INTERPRETATION:
From the above graph we can see that 86% respondents says that there is a waste after recycling process,
While 14% respondents are said there is not any waste after recycling process.

Yes
86%
No
14%
REMAINING WASTE
62

8. If the answer of question-7 is ?YES? then can it be recycled further? (Tick mark the applicable one)


INTERPRETATION:
According to the above chart we can say that 84% of respondents says that waste of recycling process can
be recycled further use for next recycling process and 16% of respondents waste of recycling process cant
be recycled further in the next recycling process.

Yes
84%
No
16%
REMAINING WASTE
63

9. If the answer of question-7 is ?NO? How is it disposed off?

? Generally what ever scrap is not recyclable it goes in to municipal waste and that is how it is
disposed off.


10. Please mention the price of one kilogram scrap related to your business in column of ?PRICE/TON? in
Rupees. (Write in multiple options if applicable)

NO.


TYPE OF MATERIAL

TYPE OF SCRAP/WASTE

PRICE
/KG

1.

STEEL/IRON


In Rs.

a.

Special Steel


Nut-bolts, Screws(big-small )

32.50

b.

Steel items/iron items

Steel sheets, Steel boxes, Cup-boards,
Broken barrel etc...


32.50


2.


PLASTIC BAGS



a.

Type 01

This bags are use for packing of
calculator and other Electronic items


10
64



b.


Type 02


White bags, bags which are Used for
packing milk and milk
Products, washing powder




25-28

c.

Type 03

Different types of bags



25-28


3.


PAPER WASTE


a.

Brown Paper

Note book cover, Craft paper


10

b.

Hard Boards

Waste paper, Medicine boxes
Notebook cover


10

c.



News Paper

10

d.


Magazines

10

e.


Office record Papers

Office record papers



10
65


4.


HARD PLASTIC



a.

Type 01
Ice cream cup, Tea cup, Light weight
cup
Light waste Plastic



9

b.

Type 02
Shoes waste, Broken Plastic, Bottle
caps


18

c.

Type 03

Solid hard waste, Audio
Cassettes


9










66







CHAPTER: 5
Hypothesis Analysis





67



Hypothesis: 1
H
0
: There is no significant dependence between income level and preference towards integrated scrap
management system.
H
1
: There is significant dependence between income level and preference towards integrated scrap
management system.

Table:

INCOME LEVEL

YES

NO

DON‘T KNOW


1

0

0

0

0

2

13

0

2

15

3

33

1

2

36

4

19

0

3

22

5

9

2

2

13

6

14

0

0

14

88

3

9

100

68





f
e
= expected frequency in a given cell,
RT = row total for the row containing that cell,
CT = column total for the row containing that cell,
n = total number of observations


X
2
= ?[(f
o
– f
e
)
2
/ f
e
]


Degrees of freedom in a chi-square test of independence
= (r – 1) (c – 1)
= (no. of rows – 1) (no. of columns – 1)
= (6 -1) (3 -1)
= 10

f
e
= RT x CT
n
69



f
o



f
e


f
o
- f
e


(f
o
– f
e
)
2


(f
o
– f
e
)
2
/ f
e


0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

13

13.20

0.20

0.04

0.003

0

0.45

-0.45

0.20

0.44

2

1.35

0.65

0.42

0.31

33

31.68

1.32

1.74

0.05

1

1.08

-0.08

0.0064

0.0059

2

3.24

-1.24

1.54

0.48

19

19.36

-0.36

0.13

0.0067

0

0.66

-0.66

0.44

0.67

3

1.98

1.02

1.04

0.53
70













9

11.44

-2.44

5.95

0.52

2

0.39

1.66

2.59

6.64

2

1.17

0.83

0.69

0.59

14

12.32

1.68

2.82

0.23

0

0.42

-0.42

0.18

0.43

0

1.26

-1.26

1.59

1.26



12.1656
71






Degree of freedom =
10 @ 95% confidence level


X
2
tab = 18.307

Here, X
2
cal < X
2
tab
So, H
0
is accepted.

Result:
There is no significant dependence between income level and preference towards integrated
scrap management system.


X
2
cal = 12.1656

72


Hypothesis: 2
H
0
: There is no significant dependence between education level and preference towards integrated scrap
management system.
H
1
: There is significant dependence between education level and preference towards integrated scrap
management system.

Table:

EDUCATION
LEVEL

YES

NO

DON‘T KNOW


1

0

0

0

0

2

0

0

0

0

3

8

1

3

12

4

43

2

3

48

5

35

0

2

37

6

2

0

1

3

88

3

9

100


73





f
e
= expected frequency in a given cell,
RT = row total for the row containing that cell,
CT = column total for the row containing that cell,
n = total number of observations

X
2
= ?[(f
o
– f
e
)
2
/ f
e
]


Degrees of freedom in a chi-square test of independence
= (r – 1) (c – 1)
= (no. of rows – 1) (no. of columns – 1)
= (6 -1) (3 -1)
= 10

f
e
= RT x CT
n
74




f
o



f
e


f
o
- f
e


(f
o
– f
e
)
2


(f
o
– f
e
)
2
/ f
e


0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

8

10.56

2.56

6.55

0.62

1

0.36

0.64

0.41

1.14

3

1.08

1.92

3.69

3.42

43

42.24

0.76

0.58

0.014

2

1.44

0.56

0.31

0.22

75












3

4.32

-1.32

1.74

0.40

35

32.56

2.44

5.95

0.18

0

1.11

-1.11

1.23

1.11

2

3.33

-1.33

1.77

0.53

2

2.64

-1.64

0.41

0.16

0

0.09

-0.09

0.0081

0.09

1

0.27

0.73

0.53

1.96



9.844
76





Degree of freedom =
10 @ 95% confidence level


X
2
tab = 18.307

Here, X
2
cal < X
2
tab
So, H
0
is accepted.

Result:
There is no significant dependence between education level and preference towards
integrated scrap management system.


X
2
cal = 9.844

77



CHAPTER: 6
Key Findings



78


From the analysis of the questionnaire following conclusions are derived.

1.The price difference comparison among prices paid to house holds per kilogram, price for wholesalers
and price for recyclers are compared here to know the ultimate profit margin if the different levels of
channels are cut.


NO.


TYPE OF
MATERIAL

TYPE OF SCRAP/WASTE

House
Hold
PRICE
/KG

Wholes
aler
PRICE
/KG

Industri
al
PRICE/K
G

Profit
margin/Kg
if provided
end to end

1.

STEEL/IRON


In Rs.

In Rs.

In Rs.

In Rs.

a.

Special Steel


Nut-bolts, Screws(big-small )

25-28

30

32.50

4.50
to7.50

b.

Steel items/iron
items

Steel sheets, Steel boxes,
Cup-boards, Broken barrel
etc...


25-28

30

32.50

4.50
to7.50




2.


PLASTIC
BAGS





79

a. Type 01 This bags are use for packing
of calculator and other
Electronic items

5 8 10 5

b.

Type 02

White bags, bags which are
Used for packing milk and
milk
Products, washing powder


15-18

20 to
22

25-28

10 to13

c.

Type 03

Different types of bags



15-18

20 to
22

25-28

10 to13



3.



PAPER
WASTE






a.



Brown Paper


Note book cover, Craft paper




5-7



9



10



3 to 5

b.

Hard Boards

Waste paper, Medicine boxes
Notebook cover


5-7

9

10

3 to 5

c.



News Paper

7-8

9

10

2 to 3
80


d.


Magazines

7-8

9


10

2 to 3

e.


Office record
Papers

Office record papers


7-8

9

10

2 to 3

4.


HARD
PLASTIC





a.

Type 01
Ice cream cup, Tea cup, Light
weight cup
Light waste Plastic


5

7

9

4

b.

Type 02
Shoes waste, Broken Plastic,
Bottle caps


12

15

18

6

c.

Type 03

Solid hard waste, Audio
Cassettes


5

7

9

4


[Based on the questionnaire analysis. Price may vary as per the market demand & supply.]




2. Most of the house holds are ready to use integrated scrap management system.
3. Most of the house holds sell scrap once in a month, so accordingly system can be developed.
81

4. Generally people are not satisfied with the current waste management system and are ready to adopt
new one.
5. The price of the scrap depends upon the quality of the scrap.
6. Generally per household the quantity of scrap is 2 Kg. per month.
7. The industrial requirement of the scrap per recycler is about 1 to 5 tons per day in which the recycling
process happens.
8. Generally scrap is sold to the rag pickers from where the channel of the scrap management starts.
9. Majorly the wholesalers buy the scrap from the rag pickers in less than 100 kg quantity.
10. There is a need of integrated scrap management system which can handle the price differentiation as
well can give proper services.












82







CHAPTER: 7
Recommended System


83


NISARG
The

Integrated Scrap Management System



84


7.1 What is “NISARG :Integrates Scrap Management System?”

Integrated Scrap management system is the combined system that reduces the levels of channel
management and increases the level of profit margin for the consumer and also for the recyclers. In
current model of channel management of scrap there are many loopholes due to which much of the
scrap goes in to waste and as well the profit margin reduces and ultimately the price of recyclable
products rise.


To mitigate this problem we tried to develop such a well managed system that can work as an
integrated system as well can enhance the efficiency of the channels.


The system is nothing but a kind of revenue generation model where in the main objective of the
model or system is to generate profit by reducing the levels of the existing channels.


For that purpose based on the survey of the households, Wholesalers and industrial recyclers we have
developed a system or model which we named as “NISARG: THE INTEGRATED SCRAP
MANAGEMENT SYSTEM.” Nisarg is purely a revenue generation system which is based on the
practical survey of the above said areas.


The system is for ahmedabad city only where in the entire city is divided in to four geographical zones
those are North, South, West and East. Well managed Logistics system as well as information
technology supported system is there for the proper management of the system.


85

The name of the system is named as nisarg which is very significant to the business model content it
holds. The main fundamental of the system is that the scrap will be collected from the house holds and
it will be directly supplied to the recyclers, so that both the parties will be in benefit.

Further more there will be human resource requirements and other financial requirements which are to
be taken in to consideration. The purview of the system is up to the post consumed materials only that
is Paper, Steel, Iron and plastic which are used maximum.

Scrap can be categorized differently, but one way of categorizing scrap is into the Following:


? Domestic Scrap

? Commercial Scrap

? Industrial Scrap

? Hazardous Scrap

? Health care Scrap

? E Scrap


The management regimes for these different classes of waste are not well defined in some cases,
particularly e-waste. Regardless of the class of waste, its management typically involves 5 stages which
are:

? Generation

? Storage

86

? Collection

? Transportation

? Recycling

There are many ways of dealing with scrap. For many years scrap management simply meant land
filling all of our wastes. Fortunately, today there are options. One option is to take a more sustainable
approach to our use of resources and management of our recyclables and wastes. The term integrated
scrap management (ISM) is often used to describe an approach in which decisions on scrap practices
take account of all scrap streams, collection treatment, as well as environmental, economic and social
benefits. In order to understand the concept of ISM, it is necessary to understand what is in the scrap
stream. Usually, we refer to the ?Four R‘s –Reduce, Reuse, Recycle, and Recover‘.


















87


7.2 Objectives Of NISARG: Integrates Scrap Management System


The main objectives of Nisarg are as following.

1. To provide integrated & well managed solution to the scrap industry.

2. To make scrap market functioning in an organized way.


3. To reduce the levels of channel management, means from collection to the recycling
there will be only one single integrated system.

4. To increase the profit margin for the consumers as well as the recyclers.


5. To reduce the market price of the recycled items.

So, these are the major objectives of ?NISARG: The integrated scrap management system.?











88


7.3 Current Channel Management Model

Current channel management model of the scrap collection encompasses many levels of channels and
each level has their profit margins which eventually increases the price of the final product. Following
chart shows the waste/scrap management practice in ahmedabad.


From the figure we can see that ,
i. Most of the Scrap/waste is collected by Municipal Authorities and agents to the
Disposal/landfill sites
ii. Generators of waste/scrap often dispose of uncollected waste at illegal dumping
Sites.
iii. Solid waste is collected for re-use, re-cycling and value addition either from
Households, illegal dumping sites and disposal sites.
iv. Less than 10% of the reusable waste is being recycled

89

The process chart is as following.




















RECYCLING FIRMS

RAG PICKERS

SEMI WHOLESALERS

BIG WHOLESALERS
90




Here the scrap is collected from the household by the rag pickers who sale the scrap to the semi
wholesalers with the added profit margin of their selves. Further more the scrap is sold to the big
wholesalers in to huge quantity and once again the profit margin of the semi wholesalers is there.
Finally the scrap reaches to the recycling firms where again the profit margin of the big wholesalers
is there. So ultimately when the scrap reaches to the recycling firm the price of the scrap goes up
and the quantity of the scrap also reduces due to the transportation and handling of the scrap.


Keeping in mind this situation there is strong need of integrated scrap management system which
can solve or mitigate all these problems and loopholes and can increase the percentage of recycling
and can also reduce the disposal of scrap and can reduce the price of final recycled product.


















91


7.4 Main Loop holes of current Channel Management Model
Main loopholes of the current channel management of scrap are as under.

1. Weight

2. Reliability

3. Connivance

1. Weight

Generally the weight of the scrap is weighted by the traditional instruments where in the reliability of
the weight is not there. Some tricks of magnate and other techniques can be used to show less weight
than the actual weight of the scrap. This is the major loophole and which can be fulfilled using
electronic weighing machines with printing facility.

2. Reliability

In scrap business there is no any big brand name on which people can rely. The authenticity of the
rag pickers is not there as to avoid theft issues. Even in some of the societies they are not allowed at
all. So if there will be a proper dressed and backboned by the known organization dealing in scrap
business, the reliability of the household increases.

3. Convenience

Generally it is seen that the timing of the rag pickers is inconvenient and the proper schedule of the
time is not there, because of that scrap can not be collected and it goes in to municipal waste for the
disposal. For that proper scheduling and most of the time on the day of the holiday or Sundays the
collection can be don

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7.5 System Development

The integrated scrap management system will be based on the entirely new model where in the
unnecessary levels of the channel management will be cut and there will be only end to end
service that means from the house hold collection to the recycling. The system will be as
following.


RECYCLING FIRMS


In this system scrap collected from the house holds will directly be sent to the recycling
firms and that‘s why the margins of the scrap will be cut and that is how the price of the final
recycling product will be reduced and the revenue generation by this system can be done.
In this system there will be requirement of the following:
1. Vehicles
2. Land field
3. Man Power
4. Marketing/Business Development
5. I.T system
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Using all these instruments and Man power the entire scenario of the scrap management and
recycling industry will be as under.



So, ultimately using integrated waste management system there will be only 10 % of the scrap
which will go for disposal while 90% of the scrap can be sent for direct recycling.



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7.6 Functioning of “NISARG”

? Ahmedabad city on its geographical site can be divided in to four zone, these are,
1. North
2. South
3. East
4. West
? Keeping all this geographical regions in mind the system will be developed where in each
zone will have its own integrated scrap management system and there will be tie up with all
most all the societies for the scrap collection process.

? The price given to the house holds will be higher than the price paid by the rag pickers and
electronic weighing machine with printing facility will be provided to the scrap collectors.


? The employees of the Nisarg Will have a common dress code that will make them separate
from others.

? There will be on line service on which customers can register the date when the scrap of
their house hold should be collected from their houses.


? There will be tie up with the society where in the fixed date will be selected on which the
scrap collectors can collect the scrap of entire society. So the transportation charges can be
saved.

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? The data of all the societies and their dates of collection will be there on the central I.T
system and sms will be sent to the each zone from the central zone to the different zones.


? There will be separate marketing and business development team which will look after the
tie ups and customers problems.

? The team of scrap collectors will be having a vehicle with the logos and punch line of the
?NISARG?.
? Collected scrap will be stored at the central land field and it will be kept separate and will
be directly sold to the recyclers as per their needs.

? So, the entire system will work as the following diagram.

CENTRAL
SYSTEM
I.T
TRANSPORTATION MARKETING
HUMAN
RESOURSE
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7.7 Benefits of “NISARG: The Integrated Scrap Management System”

Benefits of NISARG: The Integrated Waste Management systems are as under,

1. It will be useful to increase the recyclable raw material and the disposal of the same can be
avoided.

2. The cost of final recycled product will be less so the ultimate consumers will have benefits.


3. Customers will have benefits in terms of scrap selling as the rate provided them will be higher
than the existing one.

4. Recyclers will also have benefits as the cost of the scrap will be less as the levels of the
channel are less.


5. The entire recycling industry will be busted because of such well organized system.

6. The scrap market which is unorganized can be little bit organized by such system.


7. Its implementation will lead to the revenue generation as it is a revenue generation model.

8. Society will have the benefit of the well organized system.



So, these are the benefits of ?NISARG: The Integrated Scrap Management System.?


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CHAPTER: 8
Conclusion







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In a current channel management model of scrap industry there are gaps which lead to the lesser scrap
collection and lesser recycling. Even the prices of the recycling products go high due to the many levels of
channels.

The recommended integrated scrap management system NISARG provides the best solution to the
problem. More and more scrap could be collected for the recycling and that will lead to less use of
environmental resources. By applying NISARG model the levels of channel management will be cut and
the profit margins for the recyclers and scrap price for house holds both will increase.

Moreover this system will lead the scrap industry to an organized format where in the professional touch
would be there and it will work as a revenue model.

There is also chance for entrepreneurship if this system is developed in a well planned manner where in
both revenue generation and environment protection are possible.




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