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Developing a Circular Economy for Food Waste in India.

Present a business report to exploit the business opportunity assigned to you in a sustainable way. Ensure you address funding, legal and governance arrangements, relevant cultural and leadership aspects, in addition to marketing, technical and sustainability considerations. Consider the risks that might prevent you succeeding and how you might mitigate those risks. Consider how this impacts some of the UN sustainable development goals (SDGs).

Solution:

Business Plan

Executive Summary

The emphasis of the report is to focus upon the issues of increased wastages of the hotels and also focusing on the ways to reduce or reuse to maintain the sustainability of the nation also. The report will give the introduction about the problem and then focusing on the idea that could be made out so that the wastage can be used at a productive position and can be helpful in reducing the costs of the hotels and restaurants also.  The prototype will focus on showing the business plan along with the explanation of the journey of the wastage towards the restaurant and using it at a better place to reduce costs and increase profitability. The timeline and implementation for every level is been specified to show the plan and making the overall developed process of the plan. The report will also focus on showing the risks that might arise and also showing the mitigation plans for the risks. The report will be showing the concluding remark about the business plan along with its implementation plan and execution.

Introduction

The hotel business is one of the fastest-growing sectors internationally. With the expansion of the business, the wastages that are produced from these hotels and restaurants is also increasing. Here, as an entrepreneur, I have planned a system to use the hotel wastage as the fertilizers to my kitchen garden in Delhi that I have developed for my hotel itself. I have also planned a system to collect the wastage from the other restaurants of different areas and setting up the kitchen garden in the areas specifically so that it can be easier for the restaurant also to provide their waste to us and we can use it as the raw material. Instead of purchasing those kitchen Gardens, we would be asking the restaurants to take a specific stake in each of the gardens which we are making so that every restaurant can become a direct stakeholder of our kitchen garden and there are more interestedly giving their wastages which can be used as a Fertilizer in the garden and the raw material that will be produced from those kitchen Gardens will be offered to the restaurants in the similar stake which they have purchased in the kitchen garden so that they can get the return also and which can be cost-effective for them. Hence, we can earn our profit by keeping a percentage of a stake from every restaurant to whom we are offering this service (Adams and Salois, 2010). The additionally produced fertilizers will be sold to the outside market, therefore, contributing to an overall increase in the level of the profits that the business will earn. The good health and the well-being goal 3 and goal 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all of the UN 17 sustainability goals will be considered for this business plan. The well-being of the people can be ensured by giving them healthy life which begins with the healthy food that they eat.   The good health and the well-being goal of the UN 17 sustainability goals will be considered for this business plan. The plan will be related to the health of the people as it would be providing chemical-free food items to the people and the restaurants. The well-being and health of the people is bene improved by consuming the organic food that is free from chemical fertilizers and also making their lifestyles to be improved.

The business will focus primarily on reusing the waste of the hotel and restaurant kitchen will be used in the kitchen gardens so that the fertilizers can be natural, the produces can be organic and also the wastage can be used productively (Adams and Salois, 2010). As the technologies have developed, the sustainability can also be bought in accordingly in the business and making a higher understanding about the organic produce and making the development of the kitchen garden.

As per the figure 1 it becomes evident that kitchen garden has contributes 61 billion Indian Rupees to the Indian economy in the year 2018 and 2019. The contribution of this sector is 0.5 % to the Gross Value Added of crop in 2019 (Statista Research Team, 2021). Thus, aspiring investors to invest in this sector.

Business Plan

This business plan is not merely a business plan instead it is a move towards the environment also, as it will reduce the chemical usage as fertilizers, making open gardens that are natural and will also offer the organic produce to the customers who are visiting the restaurant.

For the business plan, the most crucial thing to star with is to collaborate with the restaurants. For this, the plan will be making the collaboration with the restaurants, in which we will focus on purchasing a piece of land to develop it as the kitchen garden. The restaurants will be asked to take a specific stake in the that land area so that they can have the share of the produce up to that extent (Adams and Salois, 2010). The restaurants require raw fruits and vegetable regularly and thus this could be taken as their source of taking the produce. The stake of the restaurants will increase their interest of giving their kitchen bio-degradable waste to us so that we can use it as the fertilizer in the kitchen garden, reducing our costs and on the other hand also reducing the costs for the restaurant for taking the organic fruits and vegetables (Ahlman, 2010).

The restaurants would be offered with the facilities of transportation so that the restaurants can easily transport their kitchen wastage to the garden and thus can be processed to the fertilizers that can be used in the garden for producing organic and chemical-free fruits and vegetables. The produce is made entirely using the techniques that are organic and also need to have the focus on producing the maximum quantity from the land (Ahlman, 2010). The restaurants belonging to a common location will share a common kitchen garden and the transportation will be given to them accordingly twice a day. The produced outcomes will be transported to the restaurants in the amount of stake that they have held in the kitchen garden area.

The primary need of the restaurant will be kept on the possibility to be fulfilled and taking the collaboration of all the restaurants of a common area of New Delhi in a similar direction so that the common crops can be produced that can be used by all the restaurants which are produced organically (Ahlman, 2010).

The business model is also been created for understanding the channels, business resources and also about the development of the application to collaborate and coordinate all the actions and business activities of the kitchen garden to promote the restaurants and the organic produce use (Ahlman, 2010). The interaction of the restaurant with the kitchen garden can be made with ease and they can collaboratively operate and can potentially tend with the increased requirements and also with the enhanced experience. The app will also be helpful to the restaurants in tracking the status of the crop produce and keeping a check over it on regular basis and also tracking the transportation of the vehicles that are coming to collect their wastage.

In the present situation of the pandemic, the restaurants are struggling to collect their raw material so these kitchen gardens can be a safer option to the restaurants (Ahlman, 2010). The pandemic has not allowed the movement to far places and no consumption was made from the outside areas and thus making it easier to them in these situations also.

Target Market

Figure 2 indicates that Industrial Asia has 46% of waste food at consumption level. Hence indicating the scope for the business (Jain et. al., 2018).

According to (Misra et. al,2011) survey 44.4% of left over and unserved food was thrown into bins. The survey was conducted on major parts of Delhi, Gurgaon, Faridabad, Ghaziabad and NOIDA.

The target markets are the restaurants and hotels itself. The major stakeholder involved in this is the restaurant. They are the stakeholder for both the inputs and the outputs of the kitchen garden. These people are directly associated with our business plan as the providers of input fertilizers and also the consumers of the outputs (Ahlman et. al., 2011).

Delhi is taken as the target market area because of the lack of produce of organic products in Delhi and also an increased level of wastage generated in the restaurants of Delhi. The restaurants have grown by 10% in the previous three years that is showing the increased in the wastages produced by restaurants by 25% in the overall area (Ahlman et. al., 2011). The potential of the growth of this garden is higher as compared to the position in other states.

As the situations of the pandemic, the unemployment level for the people has increased, in Delhi to 45.6% from 35% previously that shows that the people can easily be available for the jobs in Delhi and also this will reduce the unemployment in Delhi to (Misra et. al,2011). This will also make the labour costs to be reduced for the kitchen garden.

Circular Economy

Business Plan will be a provider of jobs to a number of farmers, who does not have a land as farmers are the backbone to the economy of India. Thus, this project will beneficially help those farmers who have lost their source of earnings in this situation. This can help the farmers to grow their crops and also focusing on developing the GDP of the nation (Ahlman et. al., 2011). The jobs will be created for the farmers of the country and also reducing the wastage and sustainably operating towards the environment along with the profitability. The land area will be developed to the cultivable land that will increase the produce of the country and will also be healthy for the consumption of the people in the society. Multiple benefits will flow from the business plan as:

Food wastage

Restaurants are having the bulk kitchen wastage. The peels and the left-over fruits and vegetables are the most common amongst this. The restaurants shall focus on segregating their wastes primarily as the categories of biodegradable and non-biodegradable wastes (Alexandratos and Bruinsma, 2012). The further segregation in the biodegradable shall constitute of kitchen waste and the other wastes.

Delhi is generating near to about 9000 metric tonnes of wastage of food. The ratio of 4% to 10% of the total restaurant purchases are been wasted (Jindal& Dhaliwal2017). This wastage can be collected from the restaurants using the transportation facilities so that the waste can be collected at a common place and can be used as a fertilizer that is organic (Alexandratos and Bruinsma, 2012).

Products

The farm will be actively managed and produced under the supervision of the farmers of the city. The choice of delivery or collection will be on the basis of the option opted by the restaurant. The reusable boxes will be used to deliver the products so that they can be reused constantly (Alexandratos and Bruinsma, 2012). The season of crop growing in the farm will be for a period of 20 weeks, having a total of 10 to 15 different crops Throughout the season the following produce will be focused as:

The land area of 10 acres will be taken for making the produce of the farm products. This will be giving the enough produce for serving in the restaurant. All the share is given in advance as per the stake taken in the land by the restaurants. The detailed planning schedule is also been developed to handle the hectic summers and tolerating the coldest springs. The crops will be shared with a cloth in summer if required, the surplus harvest will be planned for every grown crop.

Budget

The organic farm will be developed, the restaurants will be offered with the services of taking the deliveries or also the option will be given in which the restaurant can also collect the produce directly from the farms.

The funding will be initially taken from personal loan as the fund will be collected as the additional required stake will be taken from the restaurants. The initial fund is to be taken for making the high level of advertising that will be taken from the loan from banks. Soon after the initial investment, the amount will be taken from the restaurants in accordance to the stake that they are willing to taken in the garden. This amount will be taken additional amount of 15%, this 15% will constitute to be the profits of our plan because of our involvement in the business as the plan. The loan will be taken on the collateral security of the land itself and it will be taken on the name of the business. The farm is having a huge variety of crops that can be grown throughout the year and also the analysis of the rough budget can be presented as follows:

The profits are increasing with a steady rate over months as the experience and command is achieved in the industry. The changing weather and the situation of heavy rainfall are been forecasted that will make the crops will not be produced to their fullest capacity and this results into the excessive wastage of crops and its damage.

Below is the detailed working for sales forecasts: –

The consumption pattern proposed by Parida et al.,2018 acted as a base for forecasting the consumption model for this business plan.

Further assumption for expense lines is considered as below: –

Market Analysis

The food consumption trends in restaurants have constantly increased since the previous decades as the people have made the consumption of food outside. The food wastage has increased in the restaurants because of the higher varieties are been offered (Bajželj, et. al., 2014). The Delhi crop market has a potential to grow because of the possible increased wastes that can be used as the organic fertilizers and offering the organic produce to the people even when they are eating out, they are eating fresh.

Competitor analysis

The comparative study with the competitors has made the position of the business to be at a better aspect. As there is no such similar business start-up already running in the Delhi state so it would be a unique idea to minimize the wastages of the business (Bajželj, et. al., 2014). In the terms of productivity, we would be better to our competitors as the primary idea of ours is not just to earn profits instead to collaborate with the hotels of Delhi and making the availability of organic raw material to the Delhi restaurants by taking their wastages.

The location of Delhi is chosen because of the feasibility of the place and reachability of the and tracking with ease. The technology of the app that is used is another USP for our brand that has improved the credibility of the farm and also made the accessibility for the restaurants to be improved (Benton, et. al., 2003). The restaurants can easily keep a check over the production and also over the tracking for transportation regularly.

Prototyping

  1. Searching for the members- The navigation of the restaurants in the areas where the farm is planned to be opened up (Bommarco, et. al., 2013). The restaurants will be made aware about the functional operations of the farm and the process of its working.
  2. Booking the stake of the members- The stake of the restaurants will be booked as per the stake that they are willing to take and willing to make the crop share also in the farm. (Bommarco, et. al., 2013) The close study of all the pros and cons of the farm shall be made before taking the stake in the business.
  3. Giving them the access to the app- As and when the restaurants take their stake in the farm, they are given the access of the app using a unique code that is unique to every member and they are shown about the level of their produce as per their area and stake. The app can be used for accessing the growth and the produce of the crop (Bindraban, et. al., 2015).  
  4. Tracking of the app and produce- The app will be having the access of the cameras that will be placed in the farm. The camera will be helpful in showing the level of produce of the crops in the area and also looking at that what all organic fertilizers and all are used in the farm and how the farmers are cultivating in the farm land (Bradbury, et. al., 2014). The produce can be tracked by every restaurant member up to the amount of their taken stake.
  5. Transportation and Delivery- the app will be helpful in looking at the transportation facilities and also showing the track about how the vehicles can reach out the restaurants for the collection of the wastage and also taking the track of where they have reached and where they are (Bradbury, et. al., 2014). The delivery can also be tracked regularly using the app so that the restaurants can know when the produce will reach them.

Business Model Canvas

The key resources of the business will involve the collection of the wastage from the restaurants and hotel kitchens that are further developed into fertilizers. The business will be developed in a way that the produce is been grown using the chemical free fertilizers that will involve the stakeholders of the business and also developing the stronger connection with the customers and the restaurants directly.

The value of the business will be over the production of the crops that are organic and chemical free. The business plan has the value to be developed in accordance with the UN sustainability goals, that will focus on providing good health to the people and the good health to a person can be offered only with the healthy food.

Implementation and Timeline

  1. Planning- The first 3 weeks, will be taken entirely to plan the process and also making the project management to be developed. The app development and the base of the entire project will be developed in this phrase and the estimation will be made for this accordingly in this period (Alexandratos and Bruinsma, 2012).
  2. Creating members and giving access- The coming 3 weeks, will be entirely used in conquering the members and also making the active contribution and stake of the restaurants in the farm area and developing the plan for accessing the crops and the produce (Bennett et. al., 2014).

Promoter of the business who will be making the idea and also developing the strategies and they will be having the salary as the BOD of business.

The management people will get paid in the form of salaries.

The farmers will receive the pay on monthly basis and additionally they will get the incentives on the basis on the produce and also the additional benefits such as health leaves and their family benefits.

The members will include the promoter, restaurant owners, farmers, manager coordinator for production and cropping and the manager coordinator for the transportation and wastage collection from the restaurants.

  • Testing and Implementation of the plan and app- The application can be developed with ease but testing of this is a crucial step to be followed upon and thus requires the plan to be implemented and evaluated effectively (Bedoussac, et. al., 2015). The plan can be developed but the implementation of this will require a period of 8 weeks. In this period, the farm will be made fertile for harvesting, hiring of the farmers who can easily adopt the use of modern technologies and can easily have the harvesting of crops in different seasons.
  • Live at work and live to the app for taking the work- The final phase of making the implementation will be made using the strategies of the farming as well as also keeping the stake of the business to be effectively bought (Bedoussac, et. al., 2015). The plan will be made as per the proposed idea and the crops will be decided prior to the season so that prior preparations can be made in accordance for enhancing the smooth functioning of the garden and also developing the farm.

Risks and Risk Mitigation

The entire plan cannot be self-funded as this is the reason why the restaurants are asked to provide the fund for the stake that they have. The tie-ups and collaborations will be made with the restaurants and also giving the plans of the business to be developed. The profits will be taken on a different stake from the members. The following could be the major risks associated with the plan. They are given as follows:

  1. As the incurred costs are higher, as the modern technologies are to be used. The higher investments are to be made by the business. the soil has to be made healthy in the farm so that the organic framing can run for a longer period and also the efficiency can be noted in long run (Aronsson, et. al., 2007). The returns cannot be ascertained at such a high pace in the starting period.
  2. Higher actual labour is needed to do natural cultivating. This implies more work should be utilized to control the development of produces. This might raise the general expenses of natural cultivating over the long haul. In some agricultural nations, ranchers endeavour to have more kids to have assistants around the homestead. Notwithstanding, with savvy cultivating strategies and techniques, the work needed for doing natural cultivating might be diminished over the long haul (Aronsson, et. al., 2007).
  3. Organic farming today to a great extent depend on plant assortments reproduced for high-input traditional frameworks. Future rearing for both expanded yields and hereditary variety incorporates better adjusted and hereditarily differentiated harvests for natural cultivating (Asai and Langer, 2014). This can build yields through fuse of various qualities like weed serious capacity, sickness obstruction and high supplement take-up effectiveness.
  4. Delhi is having a huge wastage produced from the restaurants but to agree over the restaurants to take a huge stake cannot be such made with ease as it requires a huge investment and it can be a risk in long run as it the investing restaurants can take over their stake from the kitchen garden as it might not give much revenues from it (Asai and Langer, 2014).

Conclusion

From the report, it can be concluded that the business plan can be developed in a way that it can be a business plan along with a way to attain the goal of sustainability in the city. The business plan will be developed in a way that it has taken the investment from the outside restaurants and taking their wastages also as thus wastage will be reduced in the city. Ozivin fertilizers will make the collection of waste material would from hotels, restaurants and pubs, they can plan to collect these wastages from the restaurants on daily basis and use them in the kitchen garden and for collecting the wastage and using it as a fertilizer can be both eco-friendly as well as a profitable aspect to study. It can help generate better produce from the plants and also reducing the overall wastages. The above report has presented all the prototypes and also showing the procedure using which the way of plan implementation is been depicted. The timeline is also shown that is helpful in analysing the position and also showing the ways in which the business plan Ozivin fertilizers can be implemented, evaluated and monitored successfully.

References

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  2. Ahlman T (2010) Organic dairy production—herd characteristics and genotype by environment interactions. Dissertation, Swedish University of Agricultural Sciences, Uppsala. Acta Universitatis agriculturae Sueciae 1652–6880; 2010:59
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  9. Bennett E, Carpenter SR, Gordon LJ (2014) Toward a more resilient agriculture. Solut J 5(5):65–75
  10. Benton TG, Vickery JA, Wilson JD (2003) Farmland biodiversity: is habitat heterogeneity the key? Trends Ecol Evol 18(4):182–188. https://doi.org/10.1016/s0169-5347(03)00011-9
  11. Bindraban PS, Dimkpa C, Nagarajan L, Roy A, Rabbinge R (2015) Revisiting fertilisers and fertilisation strategies for improved nutrient uptake by plants. Biol Fert Soils 51(8):897–911. https://doi.org/10.1007/s00374-015-1039-7
  12. Bommarco R, Kleijn D, Potts SG (2013) Ecological intensification: harnessing ecosystem services for food security. Trends Ecol Evol 28(4):230–238. https://doi.org/10.1016/j.tree.2012.10.012
  13. Bradbury KE, Balkwill A, Spencer EA et al (2014) Organic food consumption and the incidence of cancer in a large prospective study of women in the United Kingdom. Br J Cancer 110:2321–2326. https://doi.org/10.1038/bjc.2014.148
  14. Jain, S., Newman, D., Cepeda-Márquez, R., & Zeller, K. (2018). Global food waste management: an implementation guide for cities. World Biogas Association, London143.
  15. Misra, S., Chadah, S., & Pathania, M. (2011). Assessment of wastage of food and ostentatious behavior during social gathering (marriages/parties/meetings, etc.) in National Capital Region Delhi.
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