Established in 2002 and operational since 2005, Rockingdeals Circular Economy (ROCKINGD) specialises in B2B re-commerce, focusing on the bulk trading of excess and open-box inventory as well as refurbished products, to promote sustainable procurement practices.
It boasts an extensivedistribution network that spans metropolitan areas; Tier I, II, and III cities; and remote regions witha special emphasis on the northeast market.
It offers a diverse product range across more than 18categories, including small home appliances, apparel, kitchenware, household items, speakers,mobile accessories, large appliances, and footwear. Collaborations with over 30 renowned brands such as Puma, Sketcher, Livpure, Whirlpool, Bajaj, Ajmal, boat etc ensure a wide product array. This
commitment to variety and quality makes it a leader in sustainable B2B procurement solutions.
Wide variety of products and greater distribution reach to drive growth
• ROCKINGD’s re-commerce offerings include excess inventory, unboxed and open-boxed products, so-called used products, refurbished products, export surplus, and demo units. Each category serves a distinct market need, providing cost-effective and environmentally friendly solutions to consumers.
• Its product portfolio is classified into five grades, ensuring transparency and quality assurance.
ROCKINGD has strategically expanded its product portfolio to include more than 18 categories
such as electrical appliances, apparel, footwear, speakers, mobile accessories, laptops, desktops,
luggage, fans, and books.
• The company has partnered with prominent brands like Puma, Sketcher, Livpure, Whirlpool, Bajaj,
Ajmal, Boat etc. It has inked a service agreement with ShopClues to set up an online store for highquality deals and refurbished products.
• It sources products in bulk from dealers such as Inalsa and Khaitan and supplies them to clients
like Jindal Mega Mart and Brand Wala. The company plans to expand into Tier II cities and
international markets, including Dubai.
• Strategic partnerships with e-commerce giants like Flipkart and Amazon bolster its market
presence. Additionally, it boasts robust warehouse infrastructure totalling over 72,000 sq.ft across
multiple locations.
• The management focuses on high-margin deals, strengthening its retail presence through
company-owned and franchised stores, and bolstering its distribution network with strategic
marketing initiatives and customer relationship management.
• It generates majority of its revenue from supplying products to over 500 active associate partners.
With 20 additional brand partnerships in the pipeline and 40–50 store additions (on a base of 20
stores till FY24), it anticipates strong growth potential. Revenue is projected to reach INR190–
200cr by FY26, driven by increased brand partnerships and geographic expansion.
Rising acceptance of re-commerce by aspirational and eco-conscious consumers
• ROCKINGD primarily targets middle-class consumers seeking affordable and high-quality
electronics. By refurbishing and reselling products, it allows these consumers to access premium
items at significantly reduced prices, offering substantial savings without compromising quality.
• Its focus on affordability appeals to budget-conscious shoppers who value cost-effectiveness. By
expanding its product categories through strategic partnerships, it ensures the availability of a
diverse range of offerings both online and offline.
• This strategy enhances accessibility and caters to varied shopping preferences, broadening
ROCKINGD’s market reach and solidifying its position as a leading provider of cost-effective and
sustainable electronic solutions.
• Historically, refurbished products faced stigma and scepticism, but the rise of online marketplaces have changed this perception. e-commerce platforms undertake rigorous, technology-driven refurbishing and quality checks. They also offer warranties to mitigate consumers’ concerns. Consequently, shoppers now trust and purchase refurbished goods, reassured by the reliability and support of established players like ROCKINGD.
Year to March FY21 FY22 FY23 FY24
Revenues (INR Cr) 11 15 15 50
Rev growth (%) NA 40 1 230
EBITDA (INR Cr) 1 0 3 8
Adjusted PAT (INR Cr) -0 0 2 5
P/E (x) NA 2,529 235 70
E-waste management: A new pathway for sustainable growth
• E-waste, or electronic waste, is one of the fastest-growing waste streams worldwide, posing significant environmental and health risks due to the presence of hazardous materials. ROCKINGD has established itself as a key player in promotingsustainable practices and advancing the circular economy. The company is tackling the e-waste problem through acomprehensive strategy that includes reducing waste, refurbishing electronic products, and setting up e-waste plants forrecycling. This multifaceted approach aims to mitigate risks and contribute to environmental sustainability.
• For electronics that cannot be refurbished, it can ensure responsible recycling methods. The company plans to establish a 4,500-5,500 MTPA e-waste recycling plant near its warehouse, with operations expected to begin in Q4FY25. The total investment for this project is estimated at INR 2cr.
• The management is proactively engaging with major electronic brands for sourcing e-waste, in addition to tapping into the scrap market. Securing leading brands as clients can significantly boost profitability due to the higher value of their e-waste. The revenue potential is particularly high for washing machines, moderate for refrigerators, and relatively low for airconditioners.
• One of the strategic advantages of this project is the potential to generate carbon credits. The company plans to utilise its inhouse capabilities to recycle materials that it previously scrapped, thereby enhancing resource efficiency. The anticipated revenue from this plant is projected at INR3–4cr/INR12–14cr in FY25/FY26, with an estimated net profit margin of 30–50%. At full capacity, its existing operations can generate a revenue of INR28–30cr if we consider two shifts.
• ROCKINGD is exploring opportunities to revolutionize waste management in smart cities by partnering with the government to manage e-waste, clothing waste, other electrical waste, and bio-waste.
The company plans to start collecting inventory directly from customers, completing the C2B2C (Customer to Business to Customer) cycle. With e-waste generation in India expected to reach 5.2mn tons by 2025, there is an urgent need for effective engagement through government and private sector collaboration. Adding an e-waste plant is a logical step for ROCKINGD to optimize process utilization and enhance revenue and profitability in the coming years.
Disc: Not invested. Tracking
Risks:
Intense Competition: The re-commerce industry is highly competitive, with numerous players vying for market share. This competition could pressure RCEL’s margins and affect its profitability.
Recent Changes: 1) Company has cancelled preferential warrants issue which was recently announced.
- Cancellation of an MoU announced recently with Digi2L
Earnings Sustainability: While RCEL has reported robust earnings growth recently, sustaining this trajectory amidst market fluctuations and operational challenges remains uncertain.
Market Volatility: RCEL’s share price has exhibited significant volatility, with an average weekly movement of 10.7%, which is higher than 75% of Indian stocks.
