Eco Recycling Limited (Ecoreco

If you go through their con call they mention

1. using a higher value input materials so something like a fridge or a tv won’t have as many precious metals in them as a phone or a laptop hence what they focus on is to use more of these laptops and mobile phones so their capacity usage is low but their output is higher.

2. they say that they bargain for a fair price for raw materials

3. sale price of epr credits – epr credits range from 11 rupees to 140 rupees per kilo as per my knowledge and the kind of material you recycle effects your epr sale price.

4. International networks they are a part of some international network which allows them to get orders from abroad

5. they are also into contract recycling so if someone from abroad gives them an order they contract it to someone in the same country.

But here are a few of my doubts –

1. Why doesn’t every company in the sector follow the same strategy as them for using a good mix of raw materials

2. This business is without any entry barriers except for maybe manufacturing so how are they able to enjoy a 60% margin

3. For epr credits how does it work , like do companies first give them money to recycle and pay again for epr credits or do these guys just keep on recycling stuff and sell epr credits.

Ps – Someone with an antithesis more than welcome I need antithesis to stay objective.

Disc : Invested