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हजारों नहीं करोड़ों कमाते हैं कबाड़ी वाले | The Economic Of SCRAP Business | Business Case Study — Transcript

by HinExp · 2,759 words · 411 segments · language en · Watch on YouTube

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0:00A voice echoes through the neighborhood
0:02. "Scrap dealer! Old newspapers, iron,
0:06bottles." A man with a cart or bicycle,
0:10loaded with the stuff you thought was
0:12trash and threw away. Most of us just
0:17glance at him and move on. Only one
0:20thought comes to mind. "Poor guy, he's
0:22forced to do this work.""What could
0:24there possibly be in this?" Friend,
0:27today I am here to burst that bubble.
0:32Because this "poor guy" you're thinking
0:34of is actually the smallest soldier in
0:36an industry that quietly turns over
0:38thousands of crores every month, and no
0:40one even notices. Listen to this
0:45statistic and pause to think. There are
0:48nearly 4 million people in India
0:49involved in this scrap business. And
0:53according to an estimate, this entire
0:55industry generates a business of about
0:5718,000 crores every month. Yes, a trash
1:02business of 18,000 crores a month. And
1:08the most shocking thing is that the
1:09same stuff you give away for free or
1:11for 2 rupees thinking it's trash,
1:13becomes gold by the time it moves up
1:14the chain. Your old newspaper, your
1:20broken bucket, your damaged mobile—to
1:22someone, this is raw material used to
1:24make new things. So today, like a
1:28detective, we will decode the accounts
1:30of this entire business. How does the
1:33scrap dealer actually earn? How does
1:36your 2-rupee trash turn into millions?
1:38What is the entire ladder of this
1:40business? And how much does the person
1:43at the very top earn? And if someone
1:45wants to start this business today, how
1:47should they do it? Let's get started.
1:51First, the basic understanding of this
1:53business, because it is so simple that
1:55you will be surprised. The entire game
1:58of the scrap business is in just one
2:00line. Buy cheap, sell expensive. The
2:06scrap dealer buys waste from your home
2:08at the lowest price and then sells it
2:10to a bigger trader at a slightly higher
2:11price. The difference in between is his
2:16profit. Sounds very easy, right? But
2:20the real trick isn't in that. The real
2:22trick lies in one hidden word.
2:25Segregation, meaning sorting. This is a
2:28very important point. Understand it
2:30carefully. When you give goods to the
2:33scrap dealer, you mix everything
2:34together. Newspapers, bottles, iron,
2:39plastic—all in one bag. And the value
2:42of this mixed trash is very low. But
2:46when the scrap dealer takes it to his
2:48facility, he separates it. Iron
2:51separate, aluminum separate, copper
2:53separate, paper separate, every type of
2:55plastic separate. And that is where the
2:58magic happens. As soon as waste is
3:01sorted into clean, separate piles, its
3:03value increases manifold. Meaning, the
3:06scrap dealer doesn't just move items
3:08from one place to another. He adds
3:11value to the items. Simply by sorting
3:13them. This is the first big secret of
3:16this business. The real money is not in
3:19the item itself, but in sorting and
3:21cleaning it. And the second secret is
3:25volume, meaning quantity. The scrap
3:27dealer's earnings on every single
3:29kilogram might be very small. Just a
3:31few rupees. But when he collects tons
3:35of material throughout the day and
3:37month, those small earnings add up to a
3:39large sum. It's just like a grocery
3:43store. Profit on one item is low, but
3:46so much is sold that the total income
3:48becomes substantial. So remember, the
3:52scrap business rests on three things.
3:56Buying cheap, increasing value by
3:58sorting, and collecting so much that
4:00small earnings become large. Now, on
4:04this math stands an entire ladder, a
4:06pyramid, and understanding that is the
4:08most interesting part of this business.
4:13Now understand the true structure of
4:14this business because here you will
4:16find out where the money is actually
4:17made. The scrap business is like a
4:21pyramid with many floors. Your waste
4:26starts from the bottom and goes up
4:27level by level, and at each level, its
4:29price keeps increasing. At the very
4:33bottom is the street vendor. This is
4:36the same man who comes to your door,
4:38calls out, and buys waste directly from
4:40you. He has neither a shop nor a
4:44warehouse. Just a pushcart or a bicycle
4:47. This is the lowest capital and
4:50highest effort job. He roams the
4:53streets all day collecting a little bit
4:55of material. The second floor is the
4:58neighborhood scrap shop. The street
5:01vendor takes all his collected material
5:03and sells it to this shop. This
5:05shopkeeper has a small space. A
5:08weighing scale and some money. He buys
5:10material from several street vendors.
5:13He sorts it and then sells it to a
5:15bigger trader than himself. His
5:18earnings are more than the street
5:19vendor's because now the material is
5:21larger in quantity and sorted. The
5:24third floor is the large warehouse, or
5:26aggregator. This is the wholesaler of
5:29this business. He collects material
5:31from many neighborhood shops. By the
5:34ton. He has a large warehouse. Big
5:38weighing machines, baling machines, and
5:40vehicles. He sorts and cleans the
5:44material even better and then sells it
5:46directly to the factory or recycler,
5:48and this is where the real big money
5:50begins. At the very top is the recycler
5:54or factory. This is the place where
5:58waste transforms back into something
5:59new. Old iron is melted down to make
6:02new rods. Old plastic is melted to make
6:05new pellets. Old paper is pulped to
6:09make new paper. This is the player with
6:13the most capital and the highest profit
6:14. Now look at the full picture. The
6:19waste you gave the hawker for ₹ 2
6:21became more expensive at every level.
6:24Hawker, shop, warehouse, factory. And
6:28this is where the second big truth of
6:29this business is hidden. The lower you
6:32are, the more the hard work and the
6:34less the money. The higher you go, the
6:37more the capital and the thicker the
6:38profit. Those who remain just hawkers
6:42stay trapped in hard labor. Those who
6:46are smart gradually climb higher. From
6:49hawking to a shop, from a shop to a
6:50warehouse. This is the path to getting
6:53rich in this business. Now for the most
6:57interesting part: every type of waste
6:59has its own world and earnings. All
7:03waste is not equal. Some have modest
7:06earnings, and some have gold hidden in
7:08them. Most common are paper and plastic
7:11. Old newspapers, books, cardboard, and
7:14plastic bottles. This is the most
7:17easily available waste. But for this
7:20very reason, its profit margin is the
7:22lowest. About 8 to 15%for paper and 10
7:26to 20%for plastic; volume is high, but
7:29earnings per kilo are low. This is the
7:33backbone of the business. But it
7:35doesn't make anyone wealthy. Now for
7:39the real game: metals. This is where
7:42the heart of this business beats. Iron
7:44is the most common metal. But the real
7:47money is in the metals that are harder
7:49to find. Aluminum, copper, and brass.
7:53There is a world of difference between
7:55the price of 1 kg of iron and 1 kg of
7:57copper. Copper is so valuable that the
8:00scrap dealer keeps it tucked away like
8:02a treasure. Profit margins in metal
8:07scrap go up to 15 to 30%, and this is
8:09where big warehouse owners make
8:11millions. This is why old fans, broken
8:18utensils, and old wires are the focus
8:20of the scrap dealer, and the hidden
8:22gold is at the top: e-waste. Old
8:28mobiles, laptops, computers, and the
8:30circuit boards inside them. This is the
8:33place where most people don't look. But
8:36this is where the biggest treasure lies
8:38. Why? Because inside these electronic
8:42items, precious metals like gold,
8:44silver, and copper are hidden. In very
8:47small amounts, but they are there.
8:50Let's understand the difference in a
8:51concrete way. Roughly, a scrap dealer
8:54buys old newspapers from you for about
8:56₹ 12 to ₹ 15 per kilo. Old iron for
8:59a bit more. But copper sells for
9:01hundreds of rupees per kilo. Meaning, 1
9:04kg of copper earns as much as perhaps
9:0750 kg of newspapers might not. These
9:09prices keep changing daily. But the gap
9:12always remains this significant. That
9:15is why an experienced scrap dealer’s
9:17eyes search for metal first in the
9:18entire pile. Everything else is just
9:21stuff that came along with it. Hear one
9:24figure and be stunned. According to an
9:28estimate, about 1000 kg of old circuit
9:30boards can earn up to ₹ 8 lakhs in
9:32just one week. This is why the profit
9:36margin in e-waste is the highest.
9:39Around 20 to 40%. The broken, useless,
9:44old phone you have is actually a small
9:46mine of precious metals. So now you
9:51understand that in the scrap business,
9:53the smartest one is he who knows where
9:55the real money is. Ordinary trash helps
9:58you get by. But wealth is hidden in
10:01metal and e-waste. And this is the
10:04difference between a minor scrap
10:05collector and a millionaire scrap
10:07dealer. Now for the question for which
10:10you are watching this video. How much
10:12does a scrap collector earn in a month?
10:16And the answer will surprise you
10:18because it depends on which floor of
10:19the pyramid they are standing on. The
10:23peddler at the very bottom. According
10:27to an estimate, a peddler who collects
10:29waste from about 8 to 10 houses daily
10:31earns around ₹ 36,000 to ₹ 45,000
10:34per month. Just stop and think. Without
10:39any major education, without any huge
10:42capital, with just a pushcart and hard
10:44work, 40k a month. This is more than
10:48the salary of many educated, employed
10:50people. The poor fellow we
10:53underestimate is actually earning quite
10:55well. Now move up to the warehouse and
10:58the category game. As you go higher in
11:02the pyramid, the earnings take a leap.
11:06Let’s see category-wise how much one
11:08can make in a month if they do this
11:09business properly. If someone does the
11:12metal scrap business, then about ₹
11:1580,000 to ₹ 1.5 lakhs per month. In
11:17plastic, about ₹ 30,000 to ₹ 50,000
11:20, in paper about ₹ 25,000 to ₹
11:2360,000, and in e-waste, which is the
11:26highest, about ₹ 1 lakh to ₹ 5
11:28lakhs per month. Meaning the same
11:32business, but what it is in and on what
11:34scale makes a world of difference in
11:36earnings. And how much will it take to
11:39start? Now the most important point,
11:42because perhaps the idea of doing this
11:45business is coming to your mind too, a
11:47small-scale scrap business can be
11:48started with about ₹ 2.5 lakhs to ₹
11:518 lakhs. What all is included in this?
11:54First, the necessary licenses and
11:56registration, because this business
11:58must be legally sound. It costs about
12:03₹ 5,000, then a scale and other
12:05essential items. Then a vehicle to
12:09transport goods, costing one to four
12:11lakhs, and some capital to buy initial
12:13stock. And this is the most beautiful
12:16thing about this business. The path to
12:19move up is wide open. Imagine a man who
12:22starts today with just a bicycle and a
12:24sack. After 2 years of hard work, he
12:28saves enough money to open a small shop
12:30. And now he starts buying goods from
12:33street vendors himself. A few years
12:35later, he sets up a small warehouse. He
12:39buys a vehicle and now sells goods
12:41directly to factories. The one who used
12:44to call out from door to door until
12:46yesterday now makes deals by the ton.
12:50This is not a fantasy; most big
12:52businessmen in this trade have come up
12:54from the bottom this way. This is the
12:57true dream of this business. Look, the
13:01starting capital is not very large, and
13:03the earnings are decent. But understand
13:06one thing clearly. This business
13:08requires hard work, dealing with some
13:10filth, and patience. It is not a
13:15get-rich-quick scheme, but those who
13:17stick with it and slowly climb the
13:19pyramid build a strong, sustainable
13:20income. An income that never stops
13:26because trash will continue to be
13:27generated in every home every day. Now,
13:31step back a little and look at the
13:32bigger picture, because this isn't just
13:34the story of the neighborhood scrap
13:36dealer. It is the story of a massive,
13:39growing industry. India generates over
13:4260 million tons of waste every year.
13:46Just feel the weight of this number. 60
13:49million tons, and a large part of this
13:51waste is actually raw material. The
13:56metal recycling business alone is worth
13:58over $ 11 billion in India and is
14:00growing rapidly. Meaning, what we call
14:05trash is actually a multi-billion
14:07dollar economy. And a very interesting
14:11point: India even imports scrap from
14:13other countries to meet its needs. That
14:17is to say, it imports. Why? Because our
14:20factories need so much raw material
14:22that the country's own waste falls
14:24short. Think about it, a thing we
14:27consider useless has to be bought from
14:29other countries. This shows how great
14:33the hunger of this business is. And
14:38here is another statistic: a large and
14:40growing share of India's total copper
14:42requirement is now being met by old,
14:44recycled copper. A few years ago, this
14:49share was about 1/4th, and it is
14:51estimated that in the coming years, it
14:53will exceed half. Meaning, the scrap
14:58dealer collecting your old wires and
15:00utensils is actually keeping the
15:01country's factories alive. And now, a
15:05new revolution is coming to this old,
15:07scattered business. Many new startups
15:11have started organizing this
15:13unorganized trade. Now, a scrap dealer
15:16can be called via an app. You place a
15:18request on the app. Someone picks up
15:21the waste from your home at a set rate,
15:23and the money goes directly into your
15:24account. Names like 'The Kabadiwala'
15:27and 'ScrapUncle' are examples of this
15:30new mindset. Some of these even reached
15:32platforms like Shark Tank. Where big
15:35investors competed to invest money in
15:37them. Think about it, the business
15:42people called dirty and small is now
15:43seeing educated youth, big investors,
15:45and technology entering it. Because the
15:49world now understands that the future
15:51belongs to a circular economy. Meaning,
15:55a world where things are not thrown
15:57away but recycled repeatedly. And the
16:01hero of that future is the same scrap
16:03dealer whom we underestimate today. But
16:06I won't just show you dreams. Let me
16:09also tell you the real challenges of
16:10this business so the picture is
16:12complete. The first challenge is that
16:15this business is very scattered and
16:16unorganized. It runs on trust here.
16:20There is room for tampering with
16:22weights, and knowing the right rates is
16:24very important. The second challenge is
16:27that waste prices change daily. They
16:30fluctuate right along with the metal
16:32market. So, sometimes profits are fat,
16:34sometimes thin. The third challenge is
16:37hard work and dirt. This is not an AC
16:40office job. It involves dust, soil,
16:42sweat, and constant running around. And
16:46the fourth is compliance with laws and
16:47licenses. Especially in e-waste, where
16:50the rules are strict. But amidst all
16:54these challenges, the one lesson from
16:56this entire story is for everyone, and
16:58that lesson is this. Opportunity is
17:02often hidden where no one wants to look
17:04. What the whole world calls trash and
17:10turns their nose up at, a wise person
17:12sees an entire business in it. The
17:16crowd runs after glamour. And real
17:20money is often hidden in those dirty,
17:21considered small businesses where
17:23competition is low and opportunity is
17:25high. And the second lesson is that the
17:30real value in any business is not in
17:32buying and selling, but in adding
17:33something to it. The scrap dealer
17:36doesn't just move waste from here to
17:38there. He sorts it, cleans it, sends it
17:41to the right place, and that is where
17:43his earnings lie. Those who only act as
17:47middlemen earn very little. Those who
17:51add real value to things earn a lot. So
17:54next time when that sound comes to your
17:56door "
17:58>> Scrap!"
18:00>> Look at that man with respect because
18:02he isn't just picking up trash. He is
18:06turning the very first wheel of a
18:08multi-billion rupee economy. Now tell
18:11me one thing in the comments. Did you
18:14know that such huge money is hidden in
18:16the scrap business and what, according
18:18to you, is the most profitable among
18:20these? Metal or e-waste? Write your
18:24opinion below. If this story taught you
18:28something new, then like it and
18:29definitely send it to that friend who
18:31always keeps saying they can't find any
18:33decent business. Maybe their path is
18:39hidden in this very trash, and
18:41subscribe to the channel because here
18:42we break down the entire system of
18:44every business that others ignore. See
18:49you in the next story. Until then, you
18:51have understood the system.

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