Emerald Emerging Markets Case Studies

Weekend Works: Junkart at a crossroads

Tushar Sankar Banerjee, Ekkank Kataria,
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Tushar Sankar Banerjee, Ekkank Kataria, (2018) "Weekend Works: Junkart at a crossroads", Emerald Emerging Markets
Case Studies, Vol. 8 Issue: 2, pp.1-20, https://doi.org/10.1108/EEMCS-12-2016-0233
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 Weekend Works: Junkart at a crossroads
Tushar Sankar Banerjee and Ekkank Kataria

It is the summer of 2015. A group of friends in their early youth have formed a group to use Tushar Sankar Banerjee
their spare time at weekends to develop technology-based solutions for the common man. is Assistant Professor and
Niraj Gupta, an undergraduate student at Delhi University, Prashanth Dwivedi, an engineer Ekkank Kataria is Student
working for a media company, Subham Shah, an employee of a multinational company, at the Fortune Institute of
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International Business,
and Shailendra Yadav, an employee of a news publishing company constituted the team.
Delhi, India.
Thus, the journey of Team Weekendworks was started in 2015.
While working on their project for a fleet management service, Team Weekendworks started
to explore other areas which had issues to be addressed and had been relatively
unexplored at that point. Luckily enough, Niraj came up with an idea to solve what was a
lingering problem for any citizen of Delhi – waste disposal. He noticed a major pattern in
nearby households that was a constant trouble for any Delhiite. He noticed that people in
his vicinity hung on to discarded items, products and goods in their homes without getting
rid of them. It was the sheer waste of recyclable material which attracted him towards this
problem. He noticed that a large proportion of those people either did not know what to do
with their discarded items or they were not very comfortable about allowing unknown local
vendors or “kabadiwalas” to enter their homes to collect discarded scrap. This problem
brought a ray of hope to Niraj who thought that being an educated person, he could change
the situation in a way that benefited the people needlessly hoarding trash and those taking
care of it. Thus, Junkart was born in October 2015. Junkart is a Web-based service provider
which helps anyone who wishes to sell recyclable and reusable waste materials from their
homes in an organized and fair manner without any hassle (Gupta, 2016).

A brief on the waste scenario in India

Every urban resident in India generates 350 to 1,000 grams of solid waste each day
generating a total of 160,000 metric tons (MT) of municipal[1] solid waste in the country. Per
capita waste generation in cities varies from 0.2 to 0.6 kg per day depending on the size
of the population.
The waste treatment industry runs parallel to sectors like infrastructure, manufacturing,
petrochemicals and energy. There is also no differentiation between terms like “industrial
waste” and “municipal waste”. The standard waste treatment methods being used are
composting, landfills, incineration and recycling with all of them having their own
advantages and disadvantages.
The Indian industrial sector generates an estimated 100 million tons/year of nonhazardous
Disclaimer. This case is written
solid wastes, with coal ash from thermal power stations accounting for more than 70 million solely for educational
tons/year. Over 8 million tons/year of hazardous waste is generated in India, and about 60 purposes and is not intended
to represent successful or
per cent is estimated to be recyclable while the remaining 3.2 million tons is nonrecyclable. unsuccessful managerial
decision-making. The authors
The generation of municipal solid waste (MSW) in India has increased from 39 million may have disguised names;
financial and other
tons/year in 2001 to 49.83 million tons/year in 2012, and it is estimated that it will increase recognizable information to
by more than five times that of the present level so that the total waste quantity generated protect confidentiality.

DOI 10.1108/EEMCS-12-2016-0233 VOL. 8 NO. 2 2018, pp. 1-20, © Emerald Publishing Limited, ISSN 2045-0621 EMERALD EMERGING MARKETS CASE STUDIES PAGE 1
 will reach 260 million tons by the year 2047. If that waste is not disposed of in a systematic
manner, a land area of more than 1,400 km2, which is equivalent to the size of the capital
of India – Delhi – would be required for disposal.
Due to inadequate transportation and a lack of labor, collection efficiency in Indian cities
has been in the range of 70-73 per cent. In some of the cities of Kerala, this figure is as low
as 10 per cent; however, some cities, including Mumbai and Ludhiana, have reached a
perfect 100 per cent level (ASSOCHAM, 2016).

Delhi and types of urban waste

Delhi is the capital city of India, situated on the banks of the River Yamuna and extending
over an area of 1,483 km2. It is a union territory. The city is bordered by the states of
Haryana to its north, west and south and Uttar Pradesh to its east. Delhi is the largest
commercial centre in Northern India, and the culture of Delhi has been influenced by its
important history. With an astounding population of 1.68 crore (16.8 million) people and a
literacy rate of 81.86 per cent (Census, 2011), Delhi is also one of the most polluted cities
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in the world. A total of five municipal authorities are responsible for MSW generation and
management and a total of 8,360 tons per day of MSW is generated in Delhi. There are
three landfill sites, namely, Bhalswa landfill site, Ghazipur sanitary landfill site and Okhla
sanitary landfill site, to dispose of the waste. These landfill sites are not designed as per
Schedule 3 of the MSW rules. In the absence of the availability of landfill sites, all five
municipal bodies are using these three sites for the illegal disposal of MSW.
Apart from municipal waste, Delhi also generates biomedical waste and electronic waste,
as well as plastic waste. Though regulatory bodies are working zealously, plastic waste
management is an issue in Delhi. The Government of the National Capital Territory (NCT)
of Delhi has imposed a ban on the manufacture, sale, storage, use, importation and
transportation of plastic carry bags in the NCT via a notification which, in turn, has been
challenged in the High Court of Delhi by the All India Plastic Industries Association and the
matter is sub judice (Govt. of NCT of Delhi, 2016).

The “Kabadiwalas” or the informal waste managers

Waste collection on the Indian subcontinent has a very long tradition. The kabadiwalas, or
waste collectors, have been a profession in India since time immemorial. Delhi is no
exception. Waste collectors mainly come from poor socioeconomic backgrounds, having
little or no education. Majorly, two types of waste collectors exist in the market, namely, the
ragpickers and the kabadiwalas.
The ragpickers are people who dwell in slums, collect reusable products or items from
garbage, roadsides and even from landfill sites, and sell those materials on to earn their
livelihood. Today, a huge population of ragpickers dwells in the resettlement colonies of
Jahangirpuri in Delhi. Jahangirpuri comprises around 20 blocks, which house families of
ragpickers. Around 20 per cent of the five lakh population of Jahangirpuri is in the business
of collecting waste. Most of the people living there are migrants from the states of Bihar,
West Bengal and even Bangladesh. Though some of them are voters, they are devoid of the
basic necessary amenities of a civil society (Sudan, 2016). Much of what is regarded as
garbage by well-to-do families is considered to be valuable by these sections of society.
On the other hand, kabadiwalas generally operate in localities, households and offices, and
collecting waste and reselling it is regarded as their profession. Kabadiwalas routinely visit
localities, typically riding a cycle or a rickshaw van, and collect reusable and recyclable
items by paying the original owners a nominal amount for waste materials. They sell it on to
other kabadiwalas who own junkyards or storage facilities and can handle bigger volumes
of scrap and waste, or they directly segregate the collected items into different categories
and sell them to recycling plants or arrange for the resale of products which can still be

PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 8 NO. 2 2018

 used. These reusable items are generally consumed by people who are extremely poor.
Typically, the waste collectors are able to source items from households, as what is defined
as waste encompasses a large variety of goods and materials including paper, plastic,
rubber, cardboard and metal containers. The efforts in this informal sector, however, have
contributed towards the environmental landscape of the region.
Up until recent times, the nature of informal waste collection in the country has been
changing. A number of organizations have sprung up in the sector trying to address the
issues that have arisen by taking the necessary steps to formalize a unified supply chain.
Instances of technology-based platforms have emerged in Delhi, Chennai, Bhopal,
Mumbai and similar cities (Zachariah and Vipashana, 2015).

The story of Weekendworks – Junkart

Weekendworks is a registered company. Junkart is a service that helps people sell
household scrap in an organized manner. The company buys recyclable waste scrap
materials, such as newspapers, books, paper, iron, plastic and aluminium, from individuals
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and organizations, as well as reusable scrap waste, which typically consumes precious
storage space. Inspired by the Prime Minister’s vision of a “Swachh Bharat” or Clean India
(Towards a Swachh Bharat, 2014), Junkart provides its users with benefits in the form of
cash as well as exciting coupons in exchange for the material they wish to sell (Gupta,
2016).

Junkart – operations
The service is provided to users who register on the Web platform, www.junkart.in.
Registration requires a name, contact number, email address, postal address and a district
location, namely, Munirka, Vasant Kunj, R. K. Puram, Saket, Hauz Rani, Malviya Nagar,
Khirki Extension, Panchsheel and other areas in South Delhi (Exhibit 1). Registrants can
request a visit by an authorized kabadiwala using this platform. Alternatively, a WhatsApp
number can also be used to request a visit, or a simple SMS would also suffice. The
personnel of Junkart operate from Munirka in South Delhi (Gupta, 2016).

The process of operations

 Step 1 – Customers/scrap owners connect to Junkart and book an appointment with the
kabadiwalas through the three means which are made available by Junkart. Currently,
Junkart can only be accessed via the internet, or through a WhatsApp message/text
message to a registered number. Junkart is in the process of developing an application
which can be run through the operating system platforms of Android and iOS
smartphones.
 Step 2 – Once the connection has been established with Junkart, the designated
kabadiwala from the area visits the household for the collection of the scrap.
 Step 3 – Various kinds of recyclable/reusable scrap are collected by the kabadiwalas
from households in exchange for a standardized rate (Exhibit 3) The responsibilities of
Junkart rest from this point onwards.
 Step 4 – Once the kabadiwala has collected the scrap, he segregates it into two
categories – recyclable or reusable. He may then sell the scrap to a bigger kabadiwala
at an increased margin or sell the items directly to recyclers. This transaction is not
monitored by Junkart.
 Step 5 – The recyclable items are forwarded to various manufacturing units which use
them in their manufacturing processes. Reusable items are sold separately. These
transactions are not monitored by Junkart either.

VOL. 8 NO. 2 2018 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3

 Junkart currently accepts recyclable items to ease its processes. Once the scale of its
operations increases, it might also collect reusable and resellable items. Junkart is also
planning to establish a retail chain network where all of its partner kabadiwalas would be
able to deal directly with the people buying and selling second-hand things.
Currently, when the kabadiwalas collect waste from the scrap owners, Junkart earns an
amount of commission on each item transaction (Exhibit 2).
Junkart allows a scrap owner to order a pick-up at a time which is convenient for them. The
kabadiwalas do not have to roam around to find households or offices who would sell waste
to them. They now have booked appointments and go only to places where they are
required. This saves them a lot of time, effort and cost. At the backend, Junkart has tied up
with 23 kabadiwalas, of which seven have already started their operations in Junkart’s
areas and have been taking orders. An initiative to bring in more local kabadiwalas and
associating them with the platform is in process; 10 to 15 more kabadiwalas are in the
pipeline to join the venture. The technology-enabled platform of Junkart offers convenience
to its registered users and a hassle-free experience for the disposal of their household
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scrap. Junkart acts as an intermediary and connects both the sellers and the buyers,
saving time and creating a win–win situation for both by. The internet-based platform of
Junkart connects the kabadiwalas and the sellers. It acts as an intermediary facilitating the
collection of scrap from households and offices (Gupta, 2016).

Target market
The target market for Junkart is those urban citizens who:

1. are working couples living in rented houses, generally ignorant of ways to dispose of
their waste;
2. lead a busy life and do not generally have time to spare for household work;
3. do not want to visit a kabadiwala’s shop personally to dispose of scrap and waste;
4. want a hassle-free experience of waste disposal on their doorsteps; and
5. are always on the lookout to put their faith in a brand because of:
 issues related to safety concerns regarding allowing strangers to have access to
their household premises to collect or scavenge waste;
 issues related to the unethical practices of informal kabadiwalas regarding
correctly weighing waste materials and paying in lieu of the correct weight; and
 issues related to quoting unfair rates for various categories of waste as per the
whims and fancies of the kabadiwalas visiting a locality, which may not have any
congruence with the rates prevailing in the market.
Junkart started off by simply providing orders to the kabadiwalas, and the kabadiwalas
could then pick the waste up from the order location, but sooner rather than later they
realized the need to make an impact on the lives of the kabadiwalas as well as the industry
as a whole. To generate reliability in its relationships with the kabadiwalas, Junkart is in the
process of building its brand value among all the stakeholders involved in the entire
process. Junkart has started issuing i-cards, caps, ragbags and bill pads to its associated
kabadiwalas to impress users with an experience that they will remember. To educate the
low-literacy kabadiwalas, Junkart has already started training them and is working on
the development of their etiquette and skill sets to ensure that they provide a service that
the regular scrap owner has not previously experienced. In addition, they only allow
kabadiwalas who have approved identity cards to go to collect Junkart’s orders (Gupta,
2016).

PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES VOL. 8 NO. 2 2018

 Junkart – in the eyes of the biggest stakeholders – the Kabadiwalas
The kabadiwalas who have become associated with Niraj via the platform are quite
experienced in the informal sector. Typically belonging to an economically weaker section
of society, the kabadiwalas are the lifeblood of the model that Niraj has set up. In the words
of Sajid Ali, a kabadiwala associated with Junkart, “I have been working with Junkart for the
past seven months, and am quite happy with the way things have turned out for me at
Junkart. I feel proud to say that I am working for a company”. Sajid has worked for the past
15 years in this sector and has recently joined Niraj’s bandwagon. He believes that all of his
friends who are also doing the same work beyond the peripheries of Junkart are quite
excited about the fact that one of their friends is working for a company in the same
business.
However, experiences of collecting waste materials from different households are not
always pleasant. Sometimes, the situation turns out to be so bad that Sajid has to buy
anything sometimes, from cardboard to unusable plastic, even if Junkart does not deal with
those products because it all adds to his income. He mentioned that in the 7 months of his
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association with Junkart, he could easily have made 500 pickups averaging two pickups
per day with an average size per order of 50 kg. Instead of hovering around numerous
gullies or mohallas, screaming at the top of his voice to announce his arrival, since
associating with Junkart, he has usually collected waste from just a group of apartments.
He now had fixed destinations to collect junk from. A bit of reverence for a “company man”
on the parts of the waste owners/household owners also did not go unnoticed to the expert
eyes of Sajid. He feels that the difference has arisen because of the positioning created by
Junkart as compared to that of the independent kabadiwalas. Junkart provides caps,
uniforms, i-cards and bill books to kabadiwalas, which act as branding elements. Usually,
the pickup is a job of 5 to 10 min, but at times, customers/scrap owners ask him to get the
products out of their homes and then weigh them. In such situations, he has to make more
effort and spend more time on jobs.
At the end of the day, he has to segregate the waste and then sell what has been collected
or sell it directly to other kabadiwalas (who own junkyards to store and segregate the waste
material by categories in bigger volumes) in places like Malviya Nagar and Hauz Rani at a
higher rate than what he had offered to the owners of the junk material. He takes his cut
from the profit here. Today, on average, he has started earning Rs 15,000-20,000 (around
US$224-299) per month generated from Junkart orders. He has also been approached by
other online reselling sites to sell waste, where he has identified an opportunity. It is all
happening because of the mobility and accessibility provided by Junkart (Ali, 2016).

Financial summary
Junkart earns a flat 8 per cent on transactions below Rs 1,000 (US$14) and 10 per cent on
transactions above it. The company and its partners maintain a standard rate across all the
areas in which they operate for scrap products (Exhibit 3) The sellers are paid at the market
rate and are also provided with redeemable coupons. Up until April 2016, Junkart had
successfully completed 718 transactions with an average transaction value of Rs 618
(US$9.24) and has collected over 15,000 kg of scrap material (Gupta, 2016). A growth
trend in appointment bookings through the platforms has been well-observed as the days
have passed (refer to Case Exhibit 4).

Promotional efforts
Junkart has mainly advertised in local yellow pages because of their cost efficiency. The
advertisers charge them a nominal amount (around Rs 800/US$11.96) in a magazine for a
second page with a potential reach of more than 10,000 people. Small leaflets or one-page
black-and-white posters are also distributed in the localities where the Junkart kabadiwalas
work at times. They have started looking into speaking about their cause at various events.

VOL. 8 NO. 2 2018 EMERALD EMERGING MARKETS CASE STUDIES PAGE 5

 Junkart is also trying to grow its online presence with its digital marketing strategies in
place.

Revenue generation model

In India, household owners get paid in cash upon the disposal of their household scrap and
waste. The scrap is then sold to recyclers who pay more than that rate simply because a
recyclable item’s cost is less than that of fresh materials. The scrap volume collected by
each kabadiwala is the only source of revenue for them. Junkart is no different. Neither
does Junkart have a different revenue model than the one above nor does it have any other
source of revenue as of now. However, by projecting the collection of 15,000 kg of
recyclable scrap in a period of just 2 months of operations with a limited workforce, it can
be estimated that big numbers will be forthcoming for Junkart in just a matter of time.
Their business model encompasses the following tenets:
 It works on no investment in capital assets (infrastructure).
It is all about partnership, not direct employment.
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 Choose an industry. Think about the most common problem it has. Find a solution and
disrupt the existing model using technological infrastructure.
 It strives for disruption by changing its consumers’ behaviours.
 It is bridging a big gap in the unorganized sector.
 It expects a rapid scaling up.
 It has improved processes using technology.
 It is raising funds for expansion in a step-by-step manner.
 It is becoming the market leader by creating entry barriers.
 It refers to its constant contact with its consumers.
 It is sowing then reaping.

Perils in the sea . . .

Despite all the good that Junkart wishes to do, like any other start-up in India, it faces the
issue of potential service gaps. The possibility of kabadiwalas giving their phone numbers
directly to customers/scrap owners or of the kabadiwalas misbehaving with the customers/
scrap owners still exists. The cofounders believe that have they have tried to neutralize
these gaps by offering coupons to customers/scrap owners and regular orders that are
convenient to the kabadiwalas. The kabadiwalas need regular, ongoing business, not just
work for a day. Junkart also follows the practice of changing the kabadiwala if orders from
a particular location come repeatedly.
Moreover, they also hope that customers/scrap owners would not save the personal
phone numbers of kabadiwalas and call them individually without informing Junkart.
There is also a risk of other players entering the market with the same business model.
They believe that what differentiates them from their potential competitors is that they
offer scalability.

Plans to make it big . . .

Junkart is operating on two platforms (Web and phone) and is in the process of
designing a mobile-operating-system-based application which would optimize the
whole process on a real-time availability basis. It would largely try to organize an
industry that struggles to ensure high standards at low costs. The projected business
model would evolve to:

PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES VOL. 8 NO. 2 2018

  find kabadiwalas with access to a facility who want to earn money;
 orchestrate them centrally to offer a highly scaled and distributed platform;
 enable people who want to sell their scrap to these kabadiwalas via a mobile
application platform;
 allocate specific kabadiwalas via the platform depending upon the location and routing
optimizations to ensure that the nearest kabadiwala would pick up orders in minimal
time;
 create a review system to ensure great service; and
 take a nominal percentage of all bookings.

The quandary
As an entrepreneur, Niraj is in a quandary; his dilemma at the moment is that he is not able
to measure whether the business that he has focused on as a burning social issue is going
to reap some benefits for his career in the long run. He is confused about his career
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decision and feels low at times. He, along with his friends, has been participating in
business plan competitions and pitching their idea to potential investors, but to their utter
dismay, they find that senior entrepreneurs and investors seem to be a bit uncertain about
the industry sector that they are trying to venture into. He has also approached a few
investors for seed funding that can help him with further research and development. There, Keywords:
also, he has seen a somewhat similar picture. Everybody is sceptical about the viability of Entrepreneurship,
this unknown informal sector. Strategy,
Social enterprise,
While on the one hand he wants to upgrade the platform that he has been working in
Entrepreneurial skills,
technologically and earn more revenue, on the other hand, he is becoming unsure about
Business formation/start ups
his growth plans for the business. It is not allowing him to rest.

Note
1. A municipal authority/municipal corporation/municipality is a form of special-purpose governmental
unit looking after urban sanitation, public health, waste management, etc., for a geographical
region.

References
Ali, S. (2016), “Ali Interview by T. S. Banerjee and E. Kataria”, Kabadiwala (12 September 2016).

ASSOCHAM (2016), Rethinking Waste - Scaling Opportunity in India, The Associated Chambers of
Commerce and Industry of India, New Delhi.

Census (2011), “Population”, Delhi Metropolitan Urban Region Population, Census, available at: www.
census2011.co.in/census/metropolitan/50-delhi.html (accessed 15 June 2016).
Govt. of NCT of Delhi (2016), Department of Environment-Waste Management, available at: www.delhi.
gov.in/wps/wcm/connect/environment/Environment/Home/Environmental⫹Issues/Waste⫹
Management (accessed 15 June 2016).

Gupta, N. (2016), “Gupta Interview by T. S. Banerjee”, Cofounder, JunkArt (21 April 2016).

Sudan, A.S. (2016), “Deccan Herald”, 16 November, available at: www.deccanherald.com/content/

441886/this-haven-kabadiwalas-waits-acceptance.html (accessed 15 June 2016).

Towards a Swachh Bharat (2014), available at: www.pmindia.gov.in/en/government_tr_rec/swachh-

bharat-abhiyan-2/ (accessed 15 June 2016).

Zachariah, R. and Vipashana, V.K. (2015), Times of India, 3 May, available at: http://timesofindia.
indiatimes.com/tech/tech-news/Kabadi-walas-go-online/articleshow/47135931.cms (accessed 16
June 2016).

VOL. 8 NO. 2 2018 EMERALD EMERGING MARKETS CASE STUDIES PAGE 7

 Exhibit 1. Current operating area of Junkart in Delhi

Figure E1
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PAGE 8 EMERALD EMERGING MARKETS CASE STUDIES VOL. 8 NO. 2 2018

 Exhibit 2. Process flow – Junkart
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Figure E2

VOL. 8 NO. 2 2018 EMERALD EMERGING MARKETS CASE STUDIES PAGE 9

 Exhibit 3. Rate list for major scrap items collected through Junkart

Table EI
Scrap/waste materials Rate

Newspaper Rs 10/kg
Plastic Rs 11/kg
Aluminum Rs 90/kg
Iron Rs 13/kg
Steel Rs 27/kg
Copper Rs 280/kg
Brass Rs 250/kg
Alloy Rs 50/kg
Glass bottles 250 ml Rs 0.50/pc
Glass bottles 1 l Rs 1/pc
Note: One rupee is equal to approximately US$0.015
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Exhibit 4. Pattern of appointment requests received from the platforms of

Junkart (September 2015 – September 2016)

Figure E3

Corresponding author
Tushar Sankar Banerjee can be contacted at: tusharsankar@live.in

PAGE 10 EMERALD EMERGING MARKETS CASE STUDIES VOL. 8 NO. 2 2018