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Green-O-Tech India™: Marching Ahead

CASE STUDY, ENTREPRENEURSHIP & STARTUPS
ET Cases - FLAME, 9 Pages
AUTHOR(S) : Dr. Mani Shreshtha, Assistant Professor, Haryana School of Business, Dr. Tanushri Purohit, Academic Director, Luxury Connect Business School, Prashant Rana, Director, Green-O-Tech India

Case Preview

Green-O-Tech India™: Marching Ahead

The 3R mantra – Reduce, Reuse and Recycle crosses one’s mind when reflecting about refuse. Environmental changes have no doubt given an impetus to recycling industry, especially wastepaper recycling, in India. In India, on an annual basis, only one-fifth of the total wastepaper is recovered for further usage. This low level of recovery can be primarily attributed to the direct supply to packaging industry. Further, lack of proper segregation mechanism at source contaminates it and makes it unfit for use. On the other hand, the recovery percentage of wastepaper in the developed nations is in the range of half to two-third of the total wastepaper generated. The poor mechanism of recovery of wastepaper in India resulted into an import of recovered fibre to a scale of 60% from developed countries, just to meet the domestic requirements (Indian Paper Manufactures Association, 2009).

Green-O-Tech India: Idea, Survey and Inception

In 2009, Mr Prashant Rana (Rana), who worked with a business consultancy firm operating in the domain of eco-friendly practices, encountered a distinctive situation. He had come across many organizations, which were facing problems in handling wastepaper and other trash disposal issues. Despite great efforts, companies were unable to fulfil the Corporate Social Responsibilities in its true sense. Out of the numerous issues discussed with the clients, one of the notions that made an impact on Rana’s mind was of recycling. This triggered an idea and he started exploring the field of recycling waste..................

First Step: Service Model Launch, Uncertainty and Failure

The company initially proposed a unique five-stage model to its clients. The model stated that Green-OTech would collect all the wastepaper waste from the client-end free of cost, transport it to warehouse, process it for segregation and get it recycled at Pulping Hubs, develop stationary products with recycled paper and offer stationary like paper, pencil, diaries, etc., to the client at a nominal price. However, the potential clients rejected the proposed model of Green-O-Tech on several grounds. For companies dealing in diverse product categories, it made little sense in putting in extra effort to continuously manage wastepaper and purchase the stationary products in return...........

Service Model: Redefined and Protected

After some hiccups with the initial service model, Green-O-Tech reworked and came up with another model for its potential clients. It was named ‘Waste to Wealth’. The new model offered a six-tier solution to the wastepaper management. As per the model Green-O-Tech would collect all the wastepaper waste from the client-end free of cost, transport it to warehouse, process it for segregation and get it recycled at Pulping Hubs, develop stationary products with recycled paper, and offer stationary like paper, pencil, diaries, etc., to the client free of cost...........

Role of Green-O-Tech

Green-O-Tech acted as a link between end consumer and end producer. It operated as a service provider for wastepaper collection and hence eliminated all the other intermediaries. This role was quite new for the recycling industry. Green-O-Tech replaced the unorganized approach for collecting wastepaper with highly professional and organized approach.................

Wastepaper Utilisation: Customary vs Green-O-Tech Way

So far, companies adopted a very common method to get rid of its wastepaper, i.e., thrown in garbage or burnt. Many a times, it was sold directly to the scrap purchasers. Out of all paper purchased, 40% –50% of the wastepaper again sold to packaging industry, which after usage finally throw it into garbage. Around 10%–15% of the wastepaper was wiped out because of rain, misuse, or non-suitability for reuse..............

Twin Service Model: An Extension

Once the Corporate Recycling Services that dealt only in wastepaper recycling was accepted, Green-O-Tech launched an extension of its services under the banner Industrial Recycling Services. This service dealt with recycling of wastepaper, metal, plastic and wood...........

Hurdles @ Green-O-Tech

Not everything was smooth for Green-O-Tech. It encountered several hurdles in executing its unique service model. As Green-O-Tech operated majorly in Delhi-NCR, identification of a space for tree plantation posed as biggest problem. As per the policy decision, they had to ensure plantation in only those areas, which were the part of public domain such as schools, parks, roads, green belts, etc..............

Green-O-Tech’s Resistance to Hurdles

Green-O-Tech resisted various hurdles through an action plan. Every month, the company provided a detailed report to its clients. Major components of the report (Exhibit V) were - total wastepaper collected, categorized data of wastepaper, impact on environment, and trees planted as well as saved...........

The Road Ahead

Challenges faced by Green-O-Tech did not deter its conviction to march ahead. In future, Green-O-Tech plans to expand and adopt the franchisee model to address the geographical dispersion of clients through extending its reach to other parts of the country especially Rajasthan and Himachal Pradesh..........

Assignment Questions

I. Do you think Green-O-Tech is ready to expand? Is it appropriate to go for franchisee model for expansion?
II. Do you think service model of Green-O-Tech for wastepaper can be replicated effectively for plastic, metal and wood recycling?
III. ..............

Exhibits

Exhibit I: Eco-Friendly Products offered by Green-O-Tech India

Exhibit II : Green-O-Tech Service Model

Exhibit III: Glimpse of Green-O-Tech India Clientele

Exhibit IV: Glimpse of Green-O-Tech India Tree Plantation Drive

Exhibit V: Monthly Analysis of Total Wastepaper Collected

Teaching Note Preview

Green-O-Tech India™: Marching Ahead

 

Synopsis

This case study represents how a small entrepreneur Mr. Prashant Rana (Rana) entered the field of recycling wastepaper with his company Green-O-Tech India (Green-O-Tech). Under his leadership, a small team of employees introduced a new service model for wastepaper collection, recycling and selling recycled products to the client. The first service model introduced by Green-O-Tech was unsuccessful. Green-O-Tech modified its service model and reintroduced itself in the market. This time the unique service model clicked so well that within a span of 5 years Green-O-Tech was able to acquire the patronage of more than 150 top-rung clientele. Being a region specific company it faced problems in expansion. Presence of unorganized paper waste collection mechanism and lack of legal guidelines for the industry made the situation even worse. Factors such as regularity of supply, quality of input and coordination with third parties added complexity to the situation. The case study elaborates the dilemmas faced by Green-O-Tech and the way the Director and his managed the situation to not only survive the challenges but also to sustain.

Prerequisite Conceptual Understanding

This case study presupposes theoretical knowledge along with corporate implications on the following aspects:

  • • Entrepreneurship and its challenges
  • • Recycling industry
  • • CSR
  • • Environment protection and sustainability issues

 

Expected Learning Outcomes

  • • Understand how a sustainable entrepreneurship business model can be developed in recycling industry
  • • Understand and value challenges faced in the paper recycling industry
  • • Meeting client expectations and integrating their sustainability goals
  • • Strategies to raise awareness regarding environmental protection

 

Case Positioning and Setting

This case study establishes an example of collaboration and encourages students to identify factors that may contribute to successful entrepreneurial  alliance. This is examined from both a start-up perspective and a sustained-program perspective. This case study finds its way in classrooms of Regular and Executive Management Programs, Courses in Entrepreneurship, Environmental, and Sustainability Studies.

Assignment Questions

The case study seeks to deliberate on the following issues:

  • I. Do you think Green-O-Tech is ready to expand? Is it appropriate to go for franchisee model for expansion?
  • II. Do you think service model of Green-O-Tech for wastepaper can be replicated effectively for plastic, metal and wood recycling?
  • III. .........................

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Abstract

The case study has been written in the backdrop of developments happening in the waste recycling industry. Increased awareness of producers and consumers along with stringent laws has provided reasonable opportunities for entrepreneurs to enter into the field. Delhi-NCR being a center for several service and manufacturing companies has emerged as a major source of input for the waste recycling industry especially paper waste. In 2010, Green-O-Tech India started its operations, in Delhi-NCR.

Efficient technology and competent team work has positioned the firm as one of the pioneer organization in the region offering customized green solutions to its clients in the field of paper, plastic, wood and metal recycling. Presently, company has collaborated with more than 150 organizations across the region to accomplish their sustainability goals. Although, the company has a unique service model for its clients focussing on their profitability, further expansion is a daunting task. Presence of unorganized paper waste collectors and lack of legal guidelines for the industry has made the situation even worse. Factors such as regularity of supply, quality of input, coordination with third parties, etc., have added complexity to the situation. The case study elaborates the concerns as well as the approach adopted by the Director and the team of Green-O-Tech India to not only survive the challenges, but to sustain in the years to come.



Pedagogical Objectives

  • To discuss waste paper recycling, its disposal and impact on the global environment
  • To discuss the challenges faced by Green-O-Tech India to create awareness regarding waste paper management and recycling
  • To discuss the role of CSR in creating sustainable policies for the organization and environmental protection
  • To examine how the organization can build a sustainable model despite the infrastructural bottlenecks and hurdles

Case Positioning and Setting

This case study establishes an example of collaboration and encourages students to identify factors that may contribute to successful entrepreneurial alliance. This is examined from both a start-up perspective and a sustained-program perspective. This case study finds its way in classrooms of Regular and Executive Management Programs, Courses in Entrepreneurship, Environmental, and Sustainability Studies.


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- Teaching Note (**ONLY for Academicians)
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