Nupur Recyclers has been shining a spotlight on India’s metallurgical recycling industry since its IPO last year (with a sufficiently strong share price since listing). For a company with a revenue of Rs 163 crore (FY22 figures) increased awareness means better understanding of the sector, its role and its relevance to markets like India Did. SaurEnergy spoke with Chairman and Managing Director Rajesh Gupta about its achievements and future prospects.
Q1. I understand that you mainly import scrap materials for recycling. Has it changed now? How do you see the prospects for sourcing from India?
Rajesh Gupta: Yes, most of our scrap is imported from the US, Europe, Asian countries and the Gulf region. These are our vintage clients who already export to many other countries and have large scrap yards. It’s accurate to say that we are considering several options before we bring the material to our scrap yards in India.
As part of the National Steel Policy, which aims to produce 300 million tonnes of steel annually by 2030-2031, India recently announced government plans such as the Vehicle Scrap Policy. About import.
In the current situation, local scrap production in India cannot fully meet demand. Auto scrap policies are helpful, but they’re only about 30-40% of what you need. India is one of the major importers of scrap metal, but if this industry is organized, it will undoubtedly have a bright future as shipping charges, export duties and other related taxes will be reduced.
Q2. How is the global non-ferrous recycling industry organized? What are the competitive advantages it needs?
Rajesh Gupta: The global non-ferrous metal recycling market is segmented on the basis of geography, metal and sector. Construction, automotive, consumer goods, and industrial products are different market segments. Copper from pipes and tubes, aluminum from window frames, storefronts, curtain walls and door handles, and zinc from roofing and galvanized steel are just a few examples of non-ferrous scrap collected from the construction industry. India must remember that he implemented a scrapping policy in 2021, long after it was globally adopted.
Providing products and services tailored to the needs of market segments should be a competitive advantage. Your target industry must be keen on consuming certain items, so you need to be specific. The biggest advantage is affordable price and 100% supply to related industries.
Q3. Could your business qualify for carbon credits for the recycling you do?
Rajesh Gupta: According to our understanding, we are eligible to receive carbon credits if we consistently and quantitatively emit less greenhouse gases than current alternatives. Increased greenhouse gas emissions are a result of metal mining. The best alternative is recycling. When you recycle, you first conserve natural resources and then use less to produce the metal. This directly affects the price.
Additionally, if you choose to melt using green fuels rather than conventional gasoline, you are definitely eligible for carbon credits. I am seeking the support of a company that
Q4. How do you plan to grow sustainably in the future? Are you looking for global supply, sales or even technology partnerships? What is your company’s 3-5 year growth vision?
Rajesh Gupta: Metal recycling minimizes emissions and air pollution, making it a greener option than traditional disposal methods. Recycling metals can help companies reach their carbon reduction goals.
Yes, international cooperation is the main factor. India is now a major importer of scrap and exports finished goods and raw materials to other countries. We are currently exploring much more modern technology outside of India for the use of these technical equipment in our following facilities. Our growth goal is to meet the needs of the industry and process all recycled scrap To do so, establish an “industrial hub” with dedicated recycling facilities. This facilitates better waste management. These manufacturing facilities use the latest technology and are self-serving, resulting in less overall waste.
Q5. Post a successful IPO. Does it affect how you see and operate your business? Where has the biggest impact been?
Rajesh Gupta: A successful IPO was indeed a great feat. We were overwhelmed by the love people showed us. An IPO is always a big step for a company and gives the company the ability to grow and expand further. In many cases, IPOs generate publicity by making their products known to “new groups of potential customers,” thus making many aware of the growing public awareness of the company. . The funds were used as working capital, providing more options for cash purchases and improving liquidity.
There are several methods that have been seen to have a positive impact. Our balance sheet has grown in size and we can see that our success has given a lot of confidence to other companies that do business with us.
Q6. What areas currently have the highest recycling rates? Which have more recycling potential?
Rajesh Gupta: One of the fastest growing sectors in the world is metal recycling. Metal recycling is one of the most important strategies for protecting the environment and is rapidly growing in demand across various industries. Recycling end-of-life products reduces waste, saves landfill space, reduces air pollution from incinerators (burning fossil fuels), and creates jobs for those who are unemployed due to lack of job opportunities or an unfavorable economy. and many other advantages. conditions.
Metals are used extensively in the automotive sector, including car and truck frames, engines, and other components. This clearly shows that one of the main drivers behind the need for recycled metals is the automotive industry.
Today, only 12.5% of e-waste is recycled. 35,274 lbs. copper, 772 lbs of silver, 75 lbs. of gold, and £33. For every million cellphones he recycles, he recovers the amount of palladium. Various metals such as gold, silver, copper and aluminum are used in mobile phones, computers, tablets and other technological gadgets.
Q7. Are you considering entering newer areas in the future? For example, we are seeing a strong push towards recycling lithium batteries.
Rajesh Gupta: We are always looking for new investment opportunities that benefit our stakeholders and investors. We try to apply all our knowledge to every opportunity we come across. Our vast recycling experience has taught us that scrap is the ideal material to recycle.
Yes, there is a big move towards recycling lithium-ion batteries. A relatively small number of academic research groups, usually operating independently, are the focus of improvement efforts. With the proliferation of aging electric vehicles and mobile devices, it is expected that a large amount of used lithium-ion batteries will be generated in the near future, and start-ups are commercializing new battery recycling technologies. More academic research on this issue is starting.
Q8. What are the biggest risks to your business?
Rajesh Gupta: Yes, recycling involves some risks. Commodity pricing plays an important role in the metals business. This is the risk that fluctuations in commodity prices will adversely affect a company’s performance and position. Uncontrollable factors such as inflation, weather, foreign events, new technologies, and even rumors can have a devastating effect on commodity prices.
The second danger is buying scrap according to specifications. The quality of scrap purchases must be of a very high standard. Margins are reduced if the required material contains a large amount of unwanted scrap. Mitigating this requires the use of quality inspections and expertise in collaboration with various companies.
Q9. What can improve the recycling market and recycling rate in India? Policy level or otherwise.
Rajesh Gupta: India is currently developing an industrial collection and recycling infrastructure. India is currently preparing to build about 100 new waste incineration plants that, when completed in 2050, could generate up to 3 GW of energy from waste. Legislative measures to increase the waste utilization rate are also being advanced in parallel.
Given the current focus on sustainable consumption, the new draft rules should take these concerns into account. As in July, the ministry formed a team to work within the comprehensive Right to Repair framework. Customers also have a duty to ensure that their purchases are safe to recycle so they don’t end up back in the e-cemetery and haunt us.
