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22nd February, 2011

The Wealth in Waste

Recyclinginvolvesprocessingusedmaterialsintonewproductstoprevent waste of potentially useful materials, reduce the consumption of fresh raw materials,reduceenergyusage,reduceairpollution(fromincineration)andwater pollution (from land filling) by reducing the need for conventional waste disposal,andlowergreenhousegasemissionsascomparedtovirginproduction. Recyclable materials include many kinds of glass, paper, metal, plastic, textiles,andelectronics.Althoughsimilarineffect,thecompostingorotherreuse ofbiodegradablewastesuchasfoodorgardenwasteisnottypicallyconsidered recycling.Materialstoberecycledareeitherbroughttoacollectioncenterorpicked up from the curbside, then sorted, cleaned, and reprocessed into new materials boundformanufacturing. GrowingEWaste Electronicwasteistodaythefastest growingcomponentofmunicipalwastein the country. There is a tendency now to upgrade mobile phones, computers and televisions more frequently than ever before.Asthesearenotproperlyrecycled, they become a health and environmental hazard, endangering human health. The United Nations estimated that around 50 million tonnes of electronic waste is generatedeachyear. ThepreliminaryestimatessuggestthattotalewastegenerationinIndiais approximately 1,46,000 tonnes per year. The top states in order of highest contributiontoewasteincludeMaharastra,AndhraPradesh,TamilNadu,Uttar Pradesh,West Bengal, Delhi, Karnataka, Gujarat, Madhya Pradesh and Punjab. ThecitywiserankingoflargestewastegeneratorsisMumbai,Delhi,Bangalore, Chennai,Kolkatta,Ahmedabad,Hyderabad,Pune,SuratandNagpur. An estimated 30,000 computers become obsolete every year from the ITindustryinBangalorealone.Thereasonanextremelyhighobsolescencerateof 30%peryear.Almost50%ofthePCssoldinIndiaareproductsfromthesecondary market and are reassembled on old components. The remaining market share is coveredbymultinationalmanufacturers(30%)andIndianbrands(22%)

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22nd February, 2011 In Delhi, the informal recycling business is estimated to be worth more thanRs2000croresgeneratedmostlyfromtheresaleofoldcomputersandmetal extracted from ion chips and PC motherboards. Around 30,000 people are involvedininformalewasterecyclinginIndiaofwhich5000areinthecapital alone. In fact, 90 per cent of ewaste recycling is carried out in slums around Delhi,MumbaiBangaloreandotherbigcities. Internationally, some of the big IT companies are reported to have taken some steps in this regard. Even desktop and laptop manufacturers are trying to ensure that they reduce their carbon footprint. Already there are many mobile phones which are ecofriendly and cause less damage. The link between sustainabilityandcommercialsuccessiswithoutdoubtbecomingclearer. India is rapidly becoming a global centre for information and communications technology development and with this growth environmental sustainability has to be kept in mind, especially in relation to ewaste. It is thus necessary that all actions relating to disposal of ewaste and all other types of hazardous waste have to be guided by sustainable development principles which have been aptly defined by the World Commission on Environment & Development. CerebraIntegratedtosetupIndiaslargesteWasteRecyclingunit Indias leading total IT Solutions providerannounced astrategicalliance to set up Indias largest Ewaste recycling unit with Cimelia Resource Recovery Pte Ltd, a subsidiary arm of EnviroHub Holdings Ltd (Singaporelisted), a global leaderinofferingenvironmentrestoration solutions for Electronics, Electrical & EquipIndustries. The alliance will help Cerebra Integrated double its Ewaste management capacity from 30,000 to 60,000 tonnes annually. Through the new plant and alliance,CerebrawillbebetterequippedtorecycleEwasteindomesticandwillget anentryininternational market, through Cimelias global clientele.The company willbeinvestingRs.50crorefortheproposedunitandaimstoachieveacompany turnoverofRs.250CroreinFY2013withaprofitmarginof25%. Cerebra Integrated Technologies Limited commenced its business in 1992 startingwiththeHardwaresectorandlaterexpandedtoprovidesoftwareservices and consulting, and today offers Total IT Solutions. Cerebra serve its customers throughbranchofficesandwithover100channelpartnersinIndia.

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22nd February, 2011 PlasticRecycling Indian plastic industry is in the pathofanimpressivegrowthnow.Indiais set to become 3rd largest consumer of plastics by 2012 after US & China. It is estimated that India generates 5600 tones of plastic waste daily. The two main sources of scrap plastic in India as classified into two categories namely consumerwasteandindustrialwaste.The consumer wastes include the wastes householdwaste,hospitalwasteandstreet waste. And as the name indicates, industrial waste includes all the waste plastic from industries. Plastic waste demands the highest cost in the recycled marketi.e.1215INRperkg. Thereareover22,000plasticprocessingunitsandover150plasticprocessing machinery manufactures in India. The machinery units supply over 2500 machineriesperannum. Considering the damage created by the plastics to the environment, the government tries to ban the usage of plastics in the country. But thousands of familiesinIndiamaketherelivingoutofthemoneyearnedthroughplasticwaste recycling.Anysuchtotalbaninthissectorwillalsoadverselyaffectthosefamilies. GaneshPolytexLtd. Ganesh Polytex Ltd. (GPL) has been churning out Polyester staple fibers and Yarns from usedPET bottles for years. Ganesh Polytex is Indias largest player in PET Recycling, growing @ 40% CAGR over last four years; has drawninterestinggrowthplans. In 1995 the company hit upon the idea to manufacture green fiber or recycledPSFfromusedPETbottleswitha capacityof6,000TPAatKanpurUnit. This plant was imported from South Korea with technical knowhow. Over the yearsthecapacityhasgrownthreefoldto18000TPA. Lookingattheenormouspotentialinthesector,in2006GPLsetupits2nd plantatRudrapur,UttaranchalwithawastePETbottleprocessingcapacityof7,200 TPA.By2008,GPLrampedupthecapacityto21,600TPA.Intherecentexpansion inMarch10thecapacitygotenhancedto39,600TPAtakingtheoverallcapacityto 57,600tpa. www.ghallabhansali.com 3

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22nd February, 2011 ManufacturingCapacity KanpurUnit YarnProcessing RecycledPolyesterFibre Rudrapur(Uttrakhand)Unit RecycledPolyesterFibre TireRecycling Thenumberofvehicleshittingtheroadsisincreasingeverydayandsoisthe numberoftyres.Thereisabusinessopportunityupforgrabsanditsinrecycling them. With more than 33 million vehicles added to the Indian roads in last three years,canyouguesstheotheritemsthatwouldhaveincreasedmanifoldleadingto somegraveproblems? Tire recycling is the process of recycling vehiclestires(ortyres)thatarenolongersuitable for use on vehicles due to wear or irreparable damage (such as punctures). These tires are among the largest and most problematic sources of waste, due to the large volume produced and theirdurability.Thosesamecharacteristicswhich makewastetiressuchaproblemalsomakethem one of the most reused waste materials, as the rubberisveryresilientandcanbereusedinother products. Approximately one tire is discarded perpersonperyear. GujaratReclaim Eventhoughitsa40yearoldindustryinIndiawiththeoldestplayerbeing GujaratReclaim,thenumberofplayersnationallyisverysmall,approx1525tyre recyclers in India, compared to 36 tyre manufacturers. The major players number onlyaboutfourorfive.TheyaremainlylocatedinNorthIndiaandMaharashtra. Prominent names include Gujarat Reclaim, ELGI Group, Balaji Group, Rishiroop andSwani. Gujarat Reclaim has an annual turnover of over Rs 15 crore from its Haridwartyrerecyclingplant,withaproductionof20tonnesofreclaimrubberper day.However,noneoftherecyclersinIndiaarefullfledgedrecyclers,andmostof themusethePanmethodforreclaimingrubber.Theyoperatebyoutsourcingpart oftheirworktoeachother. www.ghallabhansali.com 4 TPA 2400 18000 TPA 39600

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22nd February, 2011 MunicipalSolidWasteManagement Municipal Solid Waste is a waste type which predominantly includes householdwaste(domesticwaste)andsometimeswiththeadditionofcommercial wastes collected by a municipality within a given area. Rapid increase in volume andtypesofsolidandhazardouswasteasaresultofcontinuouseconomicgrowth, urbanizationandindustrialization,isbecomingaburgeoningproblemfornational andlocalgovernmentstoensureeffectiveandsustainablemanagementofwaste. o Urbanization gathering momentum: Urban population to total population increased from 17% in 1951 to 28 % in 2001. This ratio is expectedtocross40%by2021. o Indiagenerates100,000MTofMunicipalSolidWasteperday. o Wastegenerationinmajorcities:0.2kgto0.6kgperpersonperday. o Collection efficiency: 70% to 90% in major metro cities; below 50% in somesmallercities. o JawaharlalNehruNationalUrbanRenewalMission(JNNURM)launched in2005,aimedatinvestingINR1,000bnoverthenext7years(beginning 05)towardsurbanrenewal. Top10CitiesintermsofWasteGenerated

a2zInfrastructureLtd Operation of MSW business commenced in the fiscal year 2008 by identifying opportunities provided by new publicprivate participation initiatives of the Government of India. In the MSW business, they provide collection, transportation, processing, disposal and treatment of municipal solid waste (MSW).Inashortspanoftimesince2008,companyhavebeenawardedcontracts for o Setting up IRRFs on a BOOT basis with an aggregate MSW capacity of 3,800tonsperday(TPD)insixcities.

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22nd February, 2011 o The collection and transportation (C&T) of MSW of an aggregate capacityof910TPDintwocities. o The processing and disposal (P&D) of MSW of an aggregate capacity of488TPDinsixcitiesinIndia. Currently,theC&TactivitiesinthecitiesofIndore,Patna(inoneoutofsix circles), Varanasi and Meerut and the P&D activities in the city of Kanpur are operational. Conclusion: Indiaisa developingcountryandcertainlyneedstoeliminatethegrowing wastestream.Indiaisemergingasoneofthemajorelectronicwastegeneratorsin theworld,recordinga10percentannualgrowth.Ifnottakenseriously,thisgrowth canbealarmingforthecountry.Recommendedstepstoeradicatewasteare:waste minimization,restructuringrecycling,protectiveprotocolforworkersandbuilding awareness among citizens. Recycling is the environmentally preferable option by extending the life of old equipments that defers the pollution and resource consumption.Recyclingisoneofthebestwaysforustohaveapositiveimpacton theworldinwhichwelive.Recyclingisimportanttoboththenaturalenvironment andus.Wemustactfastastheamountofwastewecreateisincreasingallthetime. Thus, India should convert this challenge into an opportunity and deal it with astuteness.

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22nd February, 2011 MittalChheda mittald@ghallabhansali.com Disclaimer:
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