I have been looking at this company as the E-waste news started making buzz.
I believe in the opportunity given the govt push to manufacturers as well as users to better handle E-waste, but not sure if Eco-reco has a right to win here.
There are 10+ organised players.
India’s largest player “Cerebra” has a capacity of 96,000 TPA and holds five ISO certifications for recycling – the only company in Asia to hold all five ISO certifications.
In comparison the company has capacity for just 7,200 TPA with utilisation of ~25%. Further, company is doing a capex to raise capacity.to 25,000 MTPA
Cost of Capex is also not material, company is spending just 50cr.
Notably, there is a definite opportunity for capacity as Frost & Sullivan research notes India has 400 registered e-waste recyclers with an installed capacity of recycling 1.07 mn TPA
India generated 1.6mn tonnes in FY21 which is growing at 27% CAGR.
The other angle that needs to be tested is the falling cost of sourcing. Mgt noted that India is moving towards the Developed market economics where manufacturers pay for the recycling instead of recyclers purchasing E-waste from them. But local scuttle butt indicates kabaddi walas still pay good money for E-waste, so why would these manufacturers start paying to Eco reco?
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