E-WASTE RE-CYCLING – BUSINESS OPPORTUNITIES

E-waste typically includes discarded computers and components, cathode ray tubes (CRTs), printed circuit boards (PCB), mobile phones, headphones, wires & cables, and white household goods such as liquid crystal display (LCD), plasma TVs, ACs, refrigerators etc.As per Industry body ASSOCHAM, India’s e-waste generation is likely to increase by nearly three times, from the existing 18 lakh MT per annum to 52 lakh MT per annum by 2020 at a compound annual growth rate (CAGR) of about 30%[1].

Figure 1: E waste across cities and categories

Despite increasing number of registered recyclers/dismantlers in the country and large volume of E-waste generated, only about 5% of it is processed through formal sector. The remaining is either donated or goes to Kabadiwallas.For example, although Hyderabad generates about 32 000 metric tonnes of E-waste annually[2] the formal sector recyclers whose combined capacity is only around 20,000 tonnes do not get adequate waste.

[1]Source: The Hindu – article dated at June, 2016
[1]Source: ASSOCHAM-Frost & Sullivan study, April, 2016

The biggest e-waste recycling market in India is Delhi and approximately 30% to 40% of the e-waste in India lands there.

Process:

E waste recycling process can be divided into two parts; separation and size reduction of metals (aluminium/copper/steel) & plastics andextraction of precious metals. Majority of Indian E waste companies do not have refinery/precious metal recovery facility, due to high capital cost (over INR 8 crores for refinery of 1 tonne per day) and lack of adequate waste availability.

Figure 2: E Waste Dismantling Process

The quality of e waste also plays a big role in deciding the nature of recycling facilities. For example PCB (Printed Circuit Board) around which the business of E waste recycling revolves can be divided into various grades depending on the gold content. As per Umicore, a precious metal refinery in Belgium, the PCBs can be divided into four grades (Table1)

Table 1: Grades of Printed Circuit Boards
PCB  GradesAvailable in
low value (Gold content of 50 PPM or lessTV-boards, monitor boards, printer boards, cordless phones, calculators, shredded bulk material after Al-/Fe-separation  etc
medium value ( gold content of minimum 100 ppm)PC-boards, laptop-and handheld-computer circuit boards, etc.
high value (gold content of 200 ppm ore more)Circuit boards from mainframes, mobile phones, ICs, MLCCs
Source: www.umicore.com

Whilerefining is useful for high grade PCBs, for low/medium grade PCBS manual dismantling coupled with extraction of copper is a more viable option.

Current Players:

The total number of registered E-waste recyclers in India is 178[3]., whereas Hyderabad has 5[4].  Some of the large players are as under

[3]Source: List of Registered E-Waste Dismantlers/Recyclers in the country (as on 29-12-2016)
[4]Source: Telangana State Pollution Control Board

Table 2: National E-Waste Recyclers – India
NameHead QuarterActivitiesCapacity (MT/Yr.)Date of Est.
Auctus E-recycling solutions P Ltd.NoidaDismantling, Metal-Nonmetal separations, Plastic recycling218002011
E- IncarnationMumbaiData security, Refurbishing, Metal- Nonmetal recovery and disposal30002010
E-ParisaraaPvt. Ltd.BangaloreData destruction, Dismantling, & Precious metal extraction8820September, 2005
Earth SenseHyderabadDismantling, Segregation & Disposal> 40002000
Eco Centric Management P. LtdMumbaiE-waste management, CSR initiatives -donations, refurbishment.2500January, 2011
Eco Recycling Ltd. (ECORECO)ThaneE-waste recycling, EPR implementation72001994, Formerly InfotrekSyscom
Greenspace Eco ManagementDelhiDismantling, Refurbishing, Take back programs, etc.600002007
Ramky ewaste recyclingHyderabadCollection, Dismantling, Metal- Nonmetal recovery and Disposal10000
TES AMM IndiaKancheepuramE Waste Recycling, Takeback program300002005

 Capital Expenditure (CAPEX) for various options:

E waste recycling chain begins with a collection centre, which can be set up for Rs. 10 lakhs. However,standalone collection centres are not encouraged to register, unless they are being set up by a recycler/refurbished or an electronic product manufacturer.  A collection centre combined with a dismantling unit can be set up for around Rs. 45 lakhs.  In India, recycling is restricted to separation of Metal and Non-metal and granulation, as the technology for extraction of precious metal is not economical.

Figure 3: Capex required for Setting up aE waste processing unit

Regulatory requirements:

The industry is governed by e waste rules which specify the approvals and infrastructure requirements. The approvals need to be obtained from State pollution control body.

Table 3: APPROVALS
List of Approvals RequiredAuthorising BodyRemarks
CTO – Consent to OperateTelangana State – Pollution Control BodyThese are considered as pre-operations & establishment approvals.
CTE – Consent to Establish
One time authorisationSuch approvals also often have a validity period.
Certificate of registration & Proof of installed capacityDistrict Industries Centre.This is a common certificate of registration under any industry and serves as pre-requisite for approvals mentioned above.
Table 4: A GLANCE AT E-WASTE MANAGEMENT RULES (2016)
ParticularsCollection centresDismantling unitsRe-cyclersRefurbishers
Who can establishProducers/Refurbishers/Dismantlers/Recycler, standalone collection centre are not allowedAny Individual, Company, Society, they must have agreement with e waste generators/producers to procure e waste
ParticularsDismantling unitsRe-cyclersRefurbishers
Restrictions on certain operationsDismantling units are not allowed Shredding or Leaching of; Circuit Boards, Lamps, Cathode ray tubes CRTs, LCDs and Plasma TVs.None provided necessary infrastructure is in place. Not defined
Area required (per tonne of capacity)300 Sq. Metres.500 Sq. Metres150 Sq. Metres

Profitability:

The profitability of e waste recycling company depends on its access to waste and cost of waste. Cost of waste accounts for around 75-85 per cent of total cost of operations. The revenue depends on the quality of waste collected by the company. For simple dismantling operations, the estimated cost of waste and recovery per tonne is as under:

Table 5: Unit Economics of Dismantling 1 Tonne assorted E-waste
Sl.No.Material% Composition (by weight) Price INR/KGValue (INR)
1Mild Steel0.23153,450
2Stainless Steel0.08151,200
3Glass0.275.001,350
4Plastics0.2710.002,700
5Copper wire0.032006,000
6Aluminium0.03902,700
7Other material including precious material0.081008,000
8Hazardous Material0.01
 Overall value (INR)25,400
 Cost of waste (INR)20,000
 Gross Profit (INR)5,400
Source: Paper on Sustainable Electronic Waste Management and Recycling Process by S. Chatterjee, Department of Information Technology, Published in American Journal of Environmental Engineering, 2012

Other than the raw material cost, which has been discussed above, rentis another significant cost,Assuming a dismantling capacity of 5 tonnes per day, the area requirement @ 300 square meter per tonne of waste is 1500 square meters and rent can be up  to INR  3-5 lakhs per annum. Further, there are other fixed overheads such as labour and interest.   As such,one needs to process at least 3-5 tonnes per day, just to recover the costs.

Opportunities for a new enterprise

The e waste sector has grown at a slow pace over the last five years, largely due to lack of awareness about e waste rules,  absence of strict guidelines for disposal of e waste and challenges from the informal sector recyclers who are able to offer a better price for the waste. However, the regulations around e waste are expected to tighten and would bring unorganised sector into mainstream.

While opportunities for e waste recycling are only expected to increase in future, profitability would depend on the value addition done by the enterprise.  Therefore, aspiring e waste companies would also need to build skill sets in e waste segregation and in identifying reusable waste. We believe that

  1. Dismantling can be a profitable option if you are able to establish a network of waste collection centres and develop skill sets to identify reusable waste
  2. Setting up a refurbishing centre, where salvaged computers/phones can be repaired using new or old components should also be attractive.
  3. Recyclers would need a large network of collection centres or need to import waste to ensure capacity utilisation

How we can help you?

We can help you set up E waste recycling unit through a number of services including

  • Market viability assessment
  • Technical consultation and
  • Detailed project report preparation

Reach Us

Write to us: bchhatre@finetrain.comadmin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

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Fruits & Spices Processing Industry: Opportunities In AP & Telangana

The fruits and spices processing industry in Andhra Pradesh and Telangana is poised for a significant growth.  Bountiful availability of raw material along with positive policy environment that will build supply chain infrastructure is likely to create many new enterprises. This blog discusses the new opportunities, policy initiatives and funding availability for the industry.

What are the opportunities?

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Enabling environment 
Pic: 1 –  Food Processing Industry: Government Policy

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Note: Enclosed is a link to the Food Processing Policy of AP
Creation of Infrastructure for Food Processing Industry

GOI as part of its Mega food park scheme has sanctioned four food processing parks in Telangana. The details are as under

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Andhra Pradesh has SRINI Food Park in Chittoor, which is operational. Further, the state government has proposed to set up 8 mega food parks. Five of these parks will be located in the coastal districts of Srikakulam, Vizianagaram, Visakhapatnam and East Godavari. Three more parks are proposed in the Rayalaseema in Chittoor, Kurnool and Anantapur.

Funding for Food Processing Industry

A fund of Rs. 2000 crore has been created under NABARD to fund the term loan for food processing industry. The fund is available for food parks as well as units that are located in food parks. Key features of loan are as under:

  1. The loan is available to food processing units located in designated food parks[1]
  2. The list of activities that would be funded include fruits/vegetable/dairy/meat/aqua/herbs/nutraceutical/food flavours, colours, detailed list is available in the link here
  3. Maximum 75% of the project cost would be funded through term loan. Project cost would include site development/machinery/consultancy charges/capitalised working capital/pre-operative interest etc. If the individual is purchasing land (not leasing), 10 % of the land cost would also be included
  4. Term loan would be for a period of 7 years, The rate of interest would be linked to the prevailing interest
  5. Collateral would be required
How can we help you:

If you are interested in setting up a food processing industry, there is no better time than now. We at FineTrain can assist you in starting a fruit/spices processing unit. Our services include

  1. Market viability assessment
  2. Detailed project report preparation
  3. Technical support
Reach Us:

Write to us: bchhatre@finetrain.comadmin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

[1] Food parks and mega food parks promoted by Ministry of food processing, food parks/food processing industrial estates promoted by State governments, Food processing SEZ, Any other area that has related infrastructure and has been designated as food park, the MOFPI has provided a list of such entities

 

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