Recycling Sector – theme for this decade , as we progress into urbanization & development recyclability becomes important theme as we progress . Government is creating policies and regulations around recycling themes and industry is following on ESG norms to deliver sustainability targets. Recycling is one of the highly unorganized sector hence there is need and as well Government regulations in place for key players to emerge and lead sector as an example. In this article we will understand about different recycling leaders in their fields of Metal recycling, Water recycling, waste recycling & Plastic recycling. Lets understand in detail recycling sector – theme for the decade & top players.Â
1. Metal Recycling – Gravita
Established in 1992, Gravita India Ltd is one of the largest lead producer in India. The company’s business is organized across four specialized verticals: Lead Recycling (flagship), Aluminum recycling, Plastic recycling and Turnkey projects. The company also has expertise in the recycling of used batteries, cable scrap/other Lead scrap, Aluminum scrap, Plastic scrap, etc..
Portfolio & Financial Parameters
Lead is about ~88% of portfolio followed by Aluminium: ~8% & Plastic Products: ~3
Value-added products contributed 45% of total revenue in FY24 which includes customized lead alloys, lead sheets, lead bricks, red lead, and lead oxide for industrial and battery applications. These higher margin products contribute 46% to revenue, and they are targeting to reach 50% by FY27
Company has delivered ~ 20% Revenue growth in last 3 & 5 years along with Profit growth of 49% & 30% respectively in last 3 & 5 years
Future Plans
By FY28, company envisions 50%+ contribution from value-added products and 30%+ Non-lead business revenue. The company wants to venture into New recycling verticals in Rubber, Lithium, Steel & Paper.
2. Water Recycling – Va Tech Wabag
The Company is engaged in the business of water treatment field. Its principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants. Business operating model of company includes EPC , Operation & Maintenance, Design Build Operate etc. where major revenue stream is EPC ~ 83% followed by Operations & Maintenance 10%+.The company is ranked the third largest private water operator in the world and among the Top 5 Global Desalination players by Global Water Intelligence, UK.
As of FY24, the company’s order book stands at Rs. ~11,400 Cr (56% EPC and 44% O&M) with 89% of orders come from municipal projects, and the remaining 11% are from industrial projects.
Financial Parameters
Company has delivered ~ 5% Revenue growth in last 3 & 5 years along with Profit growth of 32% & 26% respectively in last 3 & 5 years. TTM growth in sales ~ 16%
Outlook
Management expects revenue growth of CAGR of 15-20% over FY27-FY29, driven by India & MEA, EBITDA Margins to sustain in the 13%-15% range. Order Book will be 3 times the revenue. It is expecting a revenue mix of 50%+ International Projects, 30% Industrial Customers, and 1/3 of EPC being EP Projects.
3. Plastic Recycling – Ganesha Ecosphere
Ganesha Ecosphere Ltd is a leading PET Waste Recycling company in India and is engaged in the manufacturing of Recycled Polyester Staple Fibre (RPSF), Spun yarn and dyed texturised yarn in India. It is the largest PET bottle recycling company in India, contributing to recycling over 16%-18% of India’s PET bottle waste.
Product Portfolio РrPET Fibre Products with application in Spinning, non-wovens, stuffing, industrial use, fibre blending, construction, fine fabrics, special textiles, apparel, flooring, packaging, interiors & Yarn Products used in Body warmers, dress materials, suitings, shirtings, furnishing fabrics, shirts, trousers, suits, home textiles, bed linen, medical textiles, home d̩cor, industrial textiles.
Portfolio & Financial Parameters
Portfolio segments include Spinning ~ 65% , technical Non-Woven Segment ~ 25% & Stuffing segment : 10%. Company has delivered ~ 10-12% Revenue growth in last 3 & 5 years along with Profit growth of 19% & 11% respectively in last 3 & 5 years
Revenue Guidance & Supportive Government Policy
It’s FY26 revenue is guided at 1,700–1,750 crore, revised down from the earlier estimate of 1,800–1,900 crore due to muted base business and stable rPET volumes. The FY27 revenue will depend on the ramp-up of new capacities, with FY28 revenue potential estimated at 2,600–2,700 crore post-expansion. The Company to be benefited from mandatory requirement of 30% recycled resources in manufacture of downstream polymer products from FY 26 & proportion is expected to increase to 60% by FY29
4. Waste Recycling – Antony Waste Handling Cell
Antony Waste Handling Cell Ltd is engaged in the business of mechanical power sweeping of roads, collection and transportation of waste, waste to energy project and undertake the designing, construction, operation and maintenance of the integrated waste management facility in Kanjurmarg, Mumbai. It is one of the top five players in the Indian municipal waste management industry with a track record of ~20 years.
The company is a leader in India’s Municipal Solid Waste (MSW) management sector. It offers a range of MSW services, including the collection & transportation (C&T), processing, and disposal of solid waste, to Indian municipal corporations.
Portfolio & Financial Parameters
MSW C&T: 62% in FY24 , MSW Processing: 23% in FY24 vs 29% in FY20, Contracts & Others: 15% in FY24. The company adopts a cluster-based growth strategy, Key focus areas include Waste-to-Energy (WTE) projects, recycling, RDF sales, and bio-mining to reclaim dump sites in Tier 1 & 2 cities, leveraging the growing privatization trend in waste management. Company has delivered ~ 15% Revenue growth in last 5 years along with Profit growth of ~15% respectively in last 5 years
Future Guidance
The company aims for a 25% CAGR in revenue growth over the next 3–5 years while sustaining EBITDA margins at 23–24%.