Namo eWaste Management Limited
Company
| Website 🔗 |  |
| Business Activity | Recycling |
| Division | E-Waste |
| Sub-class | Electronics |
| Location | Faridabad, Palwal Haryana Nashik, Maharashtra |
| Establishment Year | 2014 |
Management
| Managing Director | Akshay Jain |
| Educational Qualifications | Master of Arts (M.A.) in International Business from the University of Greenwich, London |
| Experience | Over 9 years of experience in the E-Waste Management Industry |
| Annual Salary | ₹ 24 Lakhs |
| Total Number of Employees | 48 |
About
Namo eWaste Management Limited is an e-waste recycling company that provides a comprehensive range of services, such as electronic recycling, refurbishment, and Extended Producer Responsibility services.
Products and Services:
Electronic Recycling:
This involves collecting, sorting, dismantling, and recycling electronic products to recover useful materials like copper, aluminium, iron, plastic, zinc, and brass scrap, along with the safe disposal of hazardous elements.
Refurbishment:
Electronic products that are still functional but outdated and require minor repairs are refurbished. This involves testing, repairing, and cleaning the devices to bring them back to a usable condition.
Extended Producer Responsibility Services (EPR):
The company assists customers in meeting their EPR targets as per the E-waste Management Rules 2022. This service includes compliance auditing and reporting, return filing, and awareness related to the safe disposal of e-waste.
Clients:
- The company’s clients include IT companies, banks, MNCs, and other organizations that need to dispose of their electronic waste in an environmentally responsible manner.
- Some of the key clients mentioned are Samsung, Phillips, Paytm, Jonnes, and Phonepe.
Manufacturing Process:
Collection:
Namo eWaste Management Limited collects electronic waste (e-waste) from various sources, including IT companies, banks, and MNCs, to help them meet their obligations under the E-Waste (Management) Rules 2022.
On-site data destruction:
Before transporting the e-waste to the recycling facility, the company ensures the secure destruction of any confidential data on the devices at the client’s site.
Sorting and dismantling:
The collected e-waste is sorted into different categories based on the type of product and its components. The items are then dismantled to extract specific components such as batteries, plastics, glass, and ferrous and non-ferrous metals.
Shredding and segregation:
The e-waste is further segregated into reusable and recyclable materials. Products that cannot be reused or refurbished are processed for recycling by shredding and segregation of various metals.
Refurbishment:
Electronic products that are still functional but outdated or require minor repairs are refurbished by replacing defective components, updating software, and cleaning the devices.
E-waste Recycling:
The company’s Faridabad factory has the necessary infrastructure to extract valuable metals like copper, aluminium, and iron from e-waste. The company also has a storage and dismantling unit in Palwal, Haryana.
Raw Materials:
The company’s primary raw material is electronic waste (e-waste), such as used desktops, laptops, printed circuit boards, and other electronic materials. The company also occasionally imports non-ferrous materials like aluminium from outside India, which is processed and sold as scrap to foundries.
Suppliers:
Direct Procurement from Producers and Manufacturers:
- The company enters into procurement service contracts with producers and manufacturers of electronic equipment.
- These contracts involve picking up e-waste from their service centres, warehouses, and retail outlets.
- This method ensures a consistent supply of e-waste from reliable sources, often in bulk quantities.
Waste Aggregators:
- The company collaborates with waste aggregators who collect e-waste from various sources, including households and businesses.
- These aggregators play a crucial role in the company’s e-waste collection for Extended Producer Responsibility (EPR) services.
- This method helps the company reach a wider range of e-waste sources and collect materials that may not be directly accessible through contracts with producers and manufacturers.
Public Awareness and Collection Drives:
- The company organizes awareness campaigns, collection drives, and events to encourage the public to dispose of their e-waste responsibly.
- This not only helps in collecting e-waste but also promotes environmental consciousness among the public.
- This method contributes to the company’s raw material sourcing while also fulfilling its corporate social responsibility.
Manufacturing Process Flowchart
Revenue – Category
Revenue – Region
Audit and Legal
Auditor’s Remarks:
No Qualifications Requiring Adjustments: The auditors explicitly state that the Restated Financial Statements do not contain any qualifications requiring adjustments.
Non-Compliances and Other Issues:
Non-compliance with certain statutory provisions: The company has not complied with certain provisions of the Companies Act, 2013, such as the filing of forms for charges and private placement share allotments.
Contingent Liabilities:
The company’s contingent liabilities as of March 31, 2024, were ₹451.26 lakhs of which ₹450 lakhs is Bank Guarantee.
Legal Cases:
Cases Filed Against the Company
Criminal Proceeding against Parikshit Satish Deshmukh:
A criminal case was filed against Parikshit Satish Deshmukh, a director of the company, for alleged fraud and cheating related to a property transaction.
Cases Filed by the Company
M/s Namo eWaste Management Limited V/s Vijay Singh:
A criminal case was filed by the company against Vijay Singh under Section 138 of the Negotiable Instruments Act, 1881, for the dishonour of a cheque worth ₹1.62 lakhs.
Tax Proceedings against the Company:
Income Tax – TDS Outstanding Demand: The company has four outstanding demands for income tax – TDS, totaling ₹1.11 lakhs.
SWOT Analysis
Strengths
| Comprehensive Service Portfolio: The company offers a wide range of e-waste management services, including collection, data destruction, refurbishment, and recycling, catering to diverse customer needs. |
| In-House Recycling Facility: The company operates its own recycling facility, enabling it to control the quality and efficiency of the recycling process and reduce reliance on third-party vendors. |
| Geographic Diversification: The company generates revenue from multiple regions across India, reducing dependence on any single market and mitigating regional risks. |
Weaknesses
| Dependence on Key Suppliers: The company relies on a limited number of key suppliers for a significant portion of its raw materials, posing supply chain risks and potential pricing challenges. |
| Non-Operational Factory Unit: The company’s investment in a non-operational factory unit in Ahmedabad raises concerns about capital allocation and expansion planning. |
Opportunities
| Growing E-Waste Market: The e-waste management market in India is experiencing rapid growth, driven by increasing electronic device usage and rising environmental concerns, presenting significant opportunities for the company to expand its operations and market share. |
| Government Initiatives: Government regulations and initiatives promoting e-waste recycling and responsible disposal create a favourable environment for the company’s services and growth prospects. |
| Strategic Partnerships: The company can explore strategic partnerships and collaborations to enhance its capabilities, access new technologies, and expand its market reach. |
Threats
| Intense Competition: The e-waste management industry is becoming increasingly competitive, with organized and unorganized players vying for market share, potentially impacting the company’s pricing and profitability. |
| Regulatory Changes: Changes in environmental, labour, or tax regulations could increase compliance costs and operational challenges for the company. |
| Technological Obsolescence: Rapid technological advancements could render the company’s existing recycling processes or refurbished products obsolete, requiring continuous investments in upgrades and innovation. |
| Environmental Risks: The company faces risks related to potential environmental damage or accidents during its operations, which could lead to financial and reputational consequences. |
Porter’s Five Forces1
| Threat of New Entrants | MODERATE |
| While there are barriers to entry, such as obtaining necessary licenses and approvals, the e-waste recycling industry is not highly capital-intensive, making it easier for new players to enter the market. |
| Bargaining Power of Suppliers | MODERATE |
| Namo eWaste Management Limited relies on a few key suppliers for a significant portion of its raw materials, giving those suppliers moderate bargaining power. However, the company also sources e-waste through waste aggregators and public awareness campaigns, which diversifies its supply chain and reduces the overall bargaining power of suppliers. |
| Bargaining Power of Buyers | MODERATE |
| The company has a few key customers that contribute significantly to its revenue, giving those buyers moderate bargaining power. However, the company also serves a diverse customer base, including individual consumers and smaller businesses, which reduces the overall bargaining power of buyers. |
| Threat of Substitute Products or Services | LOW |
| There is no direct substitute for e-waste recycling, as it is mandated by environmental regulations. |
| Rivalry Among Existing Competitors | HIGH |
| The e-waste recycling industry is highly competitive, with both organized and unorganized players vying for market share. The company faces competition from larger, established players, as well as smaller, local players. The industry is characterized by price wars, aggressive marketing, and innovation to gain market share. |
Peer Comparison
The company’s performance on various financial and operational metrics compared to its peers for FY 2024 is as follows:
| Metric | Namo eWaste Management Limited | Eco Recycling Limited | Cerebra Integrated Technologies Limited |
| Revenue from Operations (₹ in Lakhs) | 10093.18 | 2801 | 5198.09 |
| EBITDA Margin (%) | 11.07% | 58.69% | -97.34% |
| PAT Margin (%) | 6.77% | 65.05% | -92.97% |
| RoE (%) | 21.54% | 32.63% | -20.64% |
| RoCE (%) | 20.71% | 34.19% | -19.94% |
| Debt to Equity Ratio | 0.41 | 0.08 | 0.18 |
Green Box
IPO Funds:
Funding capital expenditure for a new factory unit:
Namo eWaste Management Limited plans to use a significant portion of the proceeds to fund the capital expenditure requirements of its subsidiary, Techeco Waste Management LLP. This expenditure is to set up a new factory unit in Nashik, Maharashtra, which will house a lithium battery recycling plant.
This plant will recycle waste lithium batteries from various sources, such as cell phones, laptops, EVs, and other electronic devices. The total cost for setting up the new factory unit is estimated to be Rs. 1163.84 Lakhs
Meeting working capital requirements:
The company intends to use a portion of the proceeds to meet its working capital requirements, which are expected to increase with the expansion of its operations.
Issuance of Certificates:
The company issues certificates of recycling or dismantling (green certificates) to its clients, helping them manage their obligations under the E-Waste Management Rule. This service adds value for the company’s clients, particularly producers and manufacturers who need to demonstrate compliance with environmental regulations.
Industry Outlook:
Strong Industry Tailwinds:
Namo eWaste Management Limited operates in the e-waste management industry, which is experiencing significant growth due to factors such as increasing electronic device usage, rising environmental concerns, and government regulations promoting responsible e-waste disposal.
Amber Box
Environmental Compliance:
Namo eWaste Management Limited operates in a heavily regulated industry, requiring various environmental permits and licenses. Failure to comply with these regulations could lead to penalties, fines, or even the suspension of its operations. The company also needs to adapt to evolving environmental regulations and technological advancements to maintain compliance and competitiveness.
Data Protection:
The company handles sensitive data during its data destruction services. With the introduction of the Digital Personal Data Protection Act, 2023, the company needs to ensure compliance with data protection principles and implement adequate security measures to avoid penalties and maintain customer trust.
Capacity Utilization:
Namo eWaste Management Limited’s current capacity utilization rate for recycling e-waste to produce metal scrap (copper scrap, aluminium scrap, etc.) is 75.88%. Sources and related content
Customer Creditworthiness:
The company is exposed to payment delays and defaults by its customers, as it does not have any firm commitments or long-term agreements with them. The company has been dependent upon a few customers for a substantial portion of its revenues. This could affect the company’s financial performance and operating cash flows.
Unregistered trademarks:
The company has not registered the trademarks it is using for its business.
Red Box
Non-operational factory unit:
The company made a capital expenditure in 2019 to set up a factory unit in Ahmedabad, Gujarat, but the unit is not operational as the government had not approved the required licenses to set up such a factory unit in said area. This raises concerns about the company’s capital allocation decisions and its ability to execute its expansion plans effectively.
Negative Operating Cash Flow:
Namo eWaste Management Limited has reported negative operating cash flow in FY 2024
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- The force value of “LOW” is considered good Click Porter’s Five Forces article for more information. ↩︎
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