Eco Recycling Limited (Ecoreco) is a
for-profit company that aims to preserve the urban environment by
providing sustainable solutions to manage end of life electrical and
electronic waste in India. Employing innovative technologies and
methodologies, Ecoreco's business model is built upon a full spectrum of
activities under e-waste management ranging from collection, to
recovery and remarketing. Ecoreco also provides auxiliary services such
as secured data destruction and disposal of hazardous substances for its
clients.
Individuals / Hindu Undivided Family-Indian (Promoter & Group)
2.47
15.51
0.50
15
Partnership Firms-Indian (Promoter & Group)
0.00
0.00
0.00
0
Persons Acting in Concert
0.00
0.00
0.00
0
Trusts
0.00
0.00
0.00
0
Others
0.00
0.00
0.00
0
Sub Total
11.61
72.83
1.46
31.70
1.46
31.70
Total ShareHolding
11.61
72.83
1.46
31.70
1.46
31.70
Particulars
Mar-11 (Rs.Cr)
Mar-10 (Rs.Cr)
Mar-09 (Rs.Cr)
Gross Sales
16
6
17
Other Income
0
0
0
Total Income
16
6
17
Total Expenditure
15
6
17
PBIDT
1
0
0
Interest
0
0
0
PBDT
1
0
0
Depreciation
0
0
0
Tax
0
0
0
Deferred Tax
0
0
0
Reported Profit After Tax
1
0
0
Extra-ordinary Items
0
0
0
Adjusted Profit After Extra-ordinary item
1
0
0
Eco Recycling Ltd has informed BSE that the Board of
Directors by way of passing a circular resolution on April 15, 2011
considered and approved the allotment of 8,00,000 (Eight Lakh)
convertible Equity Warrants to the Bennett Coleman & Company Limited
(investor) at a price of Rs. 43/- (Rupees Forty Three only) per warrant
and 25% of the total consideration i.e. 86 lacs be received by the
Companiy
Infotrek Syscom Ltd has informed BSE that the Company has successfully completed the amalgamation of Eco Recycling Ltd.
Consolidated all the all available information in the web. The industry and company look very interesting. Though the financials are nothing great to talk about we need to see the potential in light of the new rules governing waste and recycling effective from May 2012. E-waste recycling operations of the company started effectively from only Sep 2010. The company with a capacity of 7200 tonnes only the major player in Mumbai when generates e-waste of around 50,000 tonnes.
What we have done in 18 years and what we assume to do in next five years are significantly different. Very bullish projection of growth , extract from con call Eco recycling
So, our 7,200 tons capacity is right now there and we have recently, acquired two more buildings about 30,000 square feet area, where we are enhancing the capacity to 25,000 metric ton. So, if the entire capacity gets utilized, we are very confident about INR300 crores to INR350 crores kind of top line can be achieved with all this probable — all this investment so far. So, presently we are not using more than 25% capacity utilization and because the rules are just one quarter old only now and hopefully we will achieve much higher number by the end of this year. We are very positive that by December itself we will
be seeing a very positive changes happening in the company in terms of the capacity utilization I mean. The point is when corporates who are using almost 70%, 63% to 70% of electronic devices they are under compulsion as per the rules to get it recycled at the end of Eco Recycling Limited and other companies who are there in the market.
So, it’s being a zero debt company, my minimum capacity utilization also giving me a breakeven level. And 25% is giving me a substantial gain also. You can imagine when I will be 100% of the 7,200 metric ton, what kind of profitability we can assume from here.
We have already started and we have been joined by about four clients already there on board for EPR obligation on their behalf. We are collecting and accumulating their EPR certificates and as soon as the portal, which is expected to be launched within this month itself by the Central Coalition Control Board, we will be selling the certificates and EPR credits will be available to our clients and to others also who wishes to buy it.
New capacity - We have already started installation of machineries and hopefully by December end, we will be completely up and running.
73.4% unpledged promoter holding, zero debt. OPM , TTM 20% plus at 25% utilization
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?
Thanks a lot for the valuable info.
I didn’t know that Eco Reco has such a great competitor. Being a small cap and with excellent results, it came on my watchlist and when it ran up straight from 127 to 175, I had a severe FOMO and ended up buying around 170.
I was under the impression that they are the market leader. But with your info, now I realised my mistake and have sold it for no profit / no loss.
Mind you, this is my OWN DECISION.
But Eco Reco may very well run-up in the future as being the only listed e-waste management company. And may lose that premium if some other company gets listed.
Currently it is not in e-waste, but they are planning for the same. Right now they are municipal waste (C&T, processing and waste to energy) and construction and demolition waste
Technology Development Board has announced its strategic financial support of 6 Crores to M/s Eco Recycling Limited’s ‘Recycling on Wheels-SmartER’ Project.
Woah, Eco reco is coming out with some path breaking announcements.
“Ecoreco has joined forces with the Centre for Materials for Electronics Technology to introduce cutting-edge technology for the efficient recovery of valuable elements from Li-ion Batteries.
With this innovative technology now at their disposal, Ecoreco is primed to recover valuable elements
such as cobalt, nickel, manganese, and more from Li-ion Batteries. This achievement marks a
significant departure from the previous practice of exporting the black mass for element recovery.
Instead, India is poised to develop its own capacity for retaining these precious metals, contributing
to the nation’s self-reliance and promoting the manufacturing of new products within the country.”
There is another similar business in this space is VA wabag Like water treatment etc you may like to keep on your radar. I invested @250 and recently exited on double around @500…I had some better opportunity to invest. They are boring and profitable businesses also limited players in this space.
Wow…The company looks interesting, with a market cap of less than 380 crores. The global e-waste management market size was valued at $49,880 million in 2020 and is projected to reach $143,870 million by 2028, registering a CAGR of 14.3% from 2021 to 2028. (Source: E-Waste Management Market Size, Share | Forecast - 2028)
Gravita (lead recycling) was in a similar situation a few years ago, and the rest is history!
I recently took a small position in this EcoReco, which looks interesting!
Superb results by the company. I believe this is a start of a big story.
Promoter has increased holding in the last few quarters, expanding capacity by 3x when utilizations were just 25%
They recently did a plant visit too, if anyone went for it, can you share your insights?
