Mulching Product Business Plan Development

Business plan development on behalf of WRAP for a New Zealand organisation entering the EU Marketplace.

A successful recycling organisation based in New Zealand had designed and developed a range of compostable mulching products. These products are an innovative, viable, ecologically sound alternative to the current agricultural use of polythene and other non-biodegradable mulches.

The business opportunity was being promoted in a number of countries, with the patented technology having multiple applications in agricultural and horticultural areas.

The organisation, having undertaken extensive trials of the product and established a market in New Zealand as preferred supplier to all New Zealand Government Ministries and many commercial growers, were seeking to expand their operations globally. A wholly owned subsidiary had been established in the UK to launch a series of manufacturing plants and promote and sell the products in the UK and Europe.

The Waste Resources Action Programme (WRAP) is a major UK Government programme that was established to promote sustainable waste management by tackling the barriers to waste minimisation and increased recycling. WRAP's Business Development Service had given some initial guidance and support to the new venture, with the intention of helping the business develop and focus their plans to expand in the UK.

Via its registered consultancy support arrangement, RED was engaged by WRAP to provide support to assist with a review of the business strategy for market entry of the mulching products into the UK. RED was tasked with prioritising and researching key areas for establishing a UK operation, in order to provide comfort to potential investors, and with the development of a UK-specific Investment Ready Business Plan/Memorandum of Information, to raise venture capital finance for new factory units.