Deal Description

Description:

1. The Company is engaged in recycling of scrap electric motors imported across the globe.
2. The Company extracts metals such as aluminum, iron and copper from electric motors; it also imports scrap copper which are then converted into ingots.
3. Recycled materials are sold to industrial products manufacturing companies across India.
4. Processing facility is located at North India with an annual capacity to recycle 3000 Metric Tons. Has team strength of 60 employees.

Revenue & Traction:

1. FY21 = INR 5.5 Cr
2. FY22 = INR 36.5 Cr
3. FY23 = INR 40 Cr (Estimated)
4. Revenue has grown at a CAGR of 270%+ between FY21 - FY23
5. Healthy operating margins of 15%, with ROCE of 75%.

Proposed Backward Integration:

1. The Company is setting-up a greenfield Registered Vehicle Scrapping Facilities (RVSF) facility at Haryana for which it has acquired land parcel of 5 acres. This facility will focus on dismantling End-of-Life (ELV) vehicles and process ELV scrap into finished materials at existing facility
2. RVSF facility is expected to commence operations by Nov, 2023 with an annual capacity of 6,000 MTPA. Its further plans to set-up similar facility in Gujarat by FY27

Key Highlights:

1. Management team has 10+ years of total experience in recycling industry, with strong networks in procuring scrap units from right source across the globe at competitive prices.
2. Scrapping of current ELVs will lead to 15-20% reduction in emissions due to vehicular pollution
3. ELV recycling will boost availability of low-cost raw materials for automotive, steel and electronics industry

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