PROPOSAL FOR WEEE RECYCLING TO PRECIOUS METALS

Project Rationale

Electronic and Electrical Industry –

Global Perspective.
Assocham and NEC Technologies study indicate the demand for electronic
products to grow at a CAGR of 41% during the period of 2016-2020 and reach
USD 400 billion by 2020 across the globe.

The „Global e-Waste Monitor 2017‟-1, published by UN revealed that the

Global information society is growing with the rapid users of Electronics &
Electrical Equipment.(EEE)

Today about half of the global population i.e 3.6 billion is fully utilizing the
internet services.

The global annual e-Waste generation has reached to 44.7 million metric tons
(MMT) by 2016 out of which only 20% has been recycled through appropriate
channels.

What it means for India.

Associated Chambers of Commerce and Industry of India (ASSOCHAM) & Frost
Sullivan (2016) has estimated the e-Waste generated in India was 1.85 million
Metric Ton (MT). The study also forecasted that it may reach 3.0 million MT by
2018.

Indian mobile devices market has been driven by rising demand for mobile
handsets due to the reducing prices, tariffs and growing mobile user base. In
value terms, the market registered a turnover of USD 16.2 billion in FY15. This
market is expected to grow at a CAGR of 17-22% over the next five years to
reach USD 35.8-44 billion by 2020.

REGULATORS ACTING TOUGH Recent New on 11th April 2019.

Ten electronic giants, including Apple, Samsung, HP and Canon have been
barred from importing equipment for missing their e-waste collection targets.

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 PROPOSAL FOR WEEE RECYCLING TO PRECIOUS METALS

The Central Pollution Control Board (CPCB) has suspended the firms’ eligibility
to import.

According to the CPCB website, the companies whose EPR authorisation has
been suspended are
1. Motorola Mobility India Pvt Ltd,
2. Apple India Pvt Ltd,
3. Canon India Pvt Ltd,
4. Eltech Appliances Pvt Ltd,
5. ETA General Pvt Ltd,
6. HP India Sales Pvt Ltd,
7. Samsung Electronics Pvt Ltd,
8. Vivo Mobile India Pvt Ltd,
9. BE Office Automation Products Pvt Ltd and Tara Consultants Pvt
Ltd.

Read more at: https://www.deccanherald.com/city/tech-giants-imports-

halted-over-e-waste-728074.html

Demand Drivers
 Growth in disposable income, Tech savvy urban youth & Rate of
Obselence.
 Growing and untapped rural market which accounts for almost
69% of Indian households. The rural consumer durables market is
growing at a CAGR of 25%.
 Availability of low cost smartphones – India has surpassed U.S. to
become the world’s 2nd largest global smartphone market in
2016.
 Extended producer Responsibility being enforced by Regulators.

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 PROPOSAL FOR WEEE RECYCLING TO PRECIOUS METALS

DESCRIPTION OF THE PROPOSED

FACILITY.
TECHNOLOGY & PROCESS

The proposed project aims at recycling and disposal of WEEE waste with
proper environmental compliance. The proposed facility will be established as
Hub & Spoke Model. Hub would have a capacity to process PCB from 5
dismantling center Total installed capacity of all sites put together would
process 9000 TPA of WEEE.

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 PROPOSAL FOR WEEE RECYCLING TO PRECIOUS METALS

Dismantling Sites to perform:

 Collection & Transportation.
 Segregation & Refurbishment.
 Downsizing & separation of Ferrous, Non-ferrous, plastics.
 Collect PCB with Precious metal fraction and grade them.
 Pack and ship to Mother Site.

COLLECTION & RECEIPT SORTING & DISMANTLING REFURBISHMENT & REUSE

MECHANICAL PROCESSING SIZE SEPARATION OF WIRINGS,

REDUCTION + MANUAL SORTING METALS,PLASTICS

SECONDARY SHREDDING & SEPARATION OF FERROUS

MAGNETIC SEPARATION METALS

EDDY CURRENT SEPARATION SEPARARTION OF NON

FERROUS METALS

OPTICAL SORTING SEPARATION OF PLASTICS

VIBRATORY SCREEN AND

GRANULATION WATER SEPARARTION TO GET
Cu,LB METALS

REJECTS TO PM EXTRACTION

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 PROPOSAL FOR WEEE RECYCLING TO PRECIOUS METALS

Mother plant to perform:

 Mechanical Processing Plant with shredders, Magnetic separator,
Eddy current separator & On-line sampling system
 CFL and LED shredding and disposal.
 Precious Metal extraction with chemical and Pyro metallurgy
process.
 Analytical Laboratory
 Air Pollution control equipment & Thermal Destruction.
 Chemical Processing
 Complete solution until the final disposal of Hazardous waste to
secure Landfill.

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 PROPOSAL FOR WEEE RECYCLING TO PRECIOUS METALS

Following components will be sent to a registered recycler for processing and

disposal.

Plastic.
Metal.
Glass.
Mercury and Haz Waste Solids to TSDF.

INTEGRAL PART OF THE WEEE

RECYCLING FA C IL ITY
VALUE ADDED SERVICES.
 Data Destruction – State of the Art technology
 Joint Branding
 Value-based Certificates for Self-Branding – EPR credits sale.
 Web-based tracking System
 Re-Marketing (authorised Refurbisher)
 Dedicated collection points at every region

COLLECTION & TRANSPORTATION

 Collection of E-waste through Bins strategically placed.
 A fleet of vehicles for on-call services with a control centre.
 Transportation to the recycling centre from collection points.
 Finished/ extracted goods transported to further recycling.

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 PROPOSAL FOR WEEE RECYCLING TO PRECIOUS METALS

Probable Proposed Scheme of the WEEE Line – LAYOUT

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PROPOSED CAPEX
5 Dismantling Center & 1 Mother plant.
COST OF PROJECT

Proposed (Rs.lacs)

Factory Land Lease & Dev. Exp. 5.0

Factory Building Leased (Sites Plus Modification) 165.0

Plant and Machineries New Plant 300.0

Misc. Fixed Assets, Electrification,Lab etc 30.0

Preliminary Expenses 15.0

Preoperative Expenses. 25.0

Contingencies 5.0

Working Capital Margin 155.0

TOTAL 700.0

MEANS OF FINANCE

Share Capital (for the new project 35%) 245.0

Term Loan. (for the new project 65%) 455.0

700.0

Cost of Land is not included in the above estimates

ASSUMPTIONS YEARS 2020 2021 2022 2023 2024 2025 2026
1 Capacity / Day Ton 30 30 30 30 30 30 30
2 Installed Capacity WEEE TPA 9000 9000 9000 9000 9000 9000 9000
3 No. of days Days 300 300 300 300 300 300 300
4 Capacity Utilisation 40% 50% 55% 65% 70% 75% 80%
5 Production & Product Spread (Tons) WEEE 3,600 4,500 4,950 5,850 6,300 6,750 7,200
a Laptop 12% 432 540 594 702 756 810 864
b Cpu (Full) 20% 720 900 990 1,170 1,260 1,350 1,440
c SMPS 5% 180 225 248 293 315 338 360
d SERVER 5% 180 225 248 293 315 338 360
e LCD Monitor 10% 360 450 495 585 630 675 720
f Monitor(CRT) 2% 72 90 99 117 126 135 144
g Keyboard 5% 180 225 248 293 315 338 360
h Mouse 5% 180 225 248 293 315 338 360
i Mix Material 3% 108 135 149 176 189 203 216
j Set Up Box 10% 360 450 495 585 630 675 720
k medium printers (HP1515N) 3% 108 135 149 176 189 203 216
l Small Printer(HP1010) 4% 144 180 198 234 252 270 288
m Dot Matrix printer 2% 72 90 99 117 126 135 144
n Scanner (HP 3670) 3% 108 135 149 176 189 203 216
o IP Phones 2% 72 90 99 117 126 135 144
p Analog Phone 2% 72 90 99 117 126 135 144
q Modem(MRO-TEK ltd) 3% 108 135 149 176 189 203 216
r UPS 2% 72 90 99 117 126 135 144
t Network Cable 2% 72 90 99 117 126 135 144
Tally 100% 3,600 4,500 4,950 5,850 6,300 6,750 7,200
PROJECTED PROFITABILITY STATEMENT

For the year ending 31st March 2020 2021 2022 2023 2024 2025 2026

1 Installed Capacity Tons /Annum 9000 9000 9000 9000 9000 9000 9000

2 Installed Capacity per day 30 30 30 30 30 30 30

3 No of Days 300 300 300 300 300 300 300

4 % utilisation of installed capacity 40% 50% 55% 65% 70% 75% 80%

5 WEEE Tons processed 3600 4500 4950 5850 6300 6750 7200

6 Sales Rs. Lacs

Sale of Fraction to Recyclers 902.4 1128.1 1240.9 1466.5 1579.3 1692.1 1804.9

PM Net Sales 709.3 886.6 975.2 1152.5 1241.2 1329.9 1418.5

Net sales 1,611.7 2,014.6 2,216.1 2,619.0 2,820.5 3,022.0 3,223.4

7 COST OF PRODUCTION

a) Raw materials consumed 675.4 844.3 928.7 1,097.6 1,182.0 1,266.4 1,350.8

b) Dismantling labour 164.0 205.0 225.5 266.6 287.1 307.6 328.1

SUB-TOTAL 839.4 1,049.3 1,154.2 1,364.1 1,469.0 1,574.0 1,678.9

c) Stores and spares 16.8 21.0 23.1 27.3 29.4 31.5 33.6

d) Power 124.1 155.2 170.7 201.7 217.3 232.8 248.3

e) Logistics cost inward & Export 223.0 278.7 306.6 362.3 390.2 418.1 445.9

f) Direct labor and wages 42.0 52.5 57.7 68.2 73.5 78.7 83.9

g) Repairs & maintenance 18.3 18.3 26.0 26.0 33.6 33.6 38.3

h) Other Manaufacturing Expences 8.4 10.5 11.5 13.6 14.7 15.7 16.8

I) Administrative Expenses 42.0 52.5 57.7 68.2 73.5 78.7 83.9

j) Selling Expenses 25.2 31.5 34.6 40.9 44.1 47.2 50.4

1,339.2 1,669.4 1,842.1 2,172.4 2,345.1 2,510.2 2,680.0

k) Gross profit 272.5 345.3 374.0 446.7 475.4 511.7 543.4

l) Depreciation 46.3 46.3 46.3 46.3 46.3 46.3 46.3

m) Misc. Exps. Written off 2.1 2.1 2.1 2.1 2.1 2.1 2.1

8 Interest

a) On term Loans 25.4 46.5 38.0 29.6 21.1 12.7 4.2

b) On working Capital 24.3 21.8 21.7 27.1 29.1 31.2 31.8

SUB TOTAL 49.7 68.3 59.8 56.7 50.2 43.9 36.0

9 Profit before Tax 174.5 228.5 265.8 341.6 376.8 419.4 459.0

10 Provision for taxes 41.3 110.4 88.8 125.0 140.9 158.7 180.9

11 Net profit 133.2 118.2 177.0 216.6 235.8 260.7 278.1

12 Depreciation added back 46.3 46.3 46.3 46.3 46.3 46.3 46.3

13 Misc. Exps. Written off 2.1 2.1 2.1 2.1 2.1 2.1 2.1 15.0

14 Net cash accruals 181.6 166.6 225.4 265.0 284.2 309.1 326.5 1,758.3

15 Interest on term loan 25.4 46.5 38.0 29.6 21.1 12.7 4.2 177.6

Cash available for debt service 206.9 213.1 263.4 294.6 305.4 321.8 330.7 1,935.9

16 Repayment obligation

I) Interest 25.4 46.5 38.0 29.6 21.1 12.7 4.2 177.6

II) Principal - 75.8 75.8 75.8 75.8 75.8 75.8 455.0

Total Repayment 25.4 122.3 113.9 105.4 97.0 88.5 80.1 632.6

17 Debt service ratio 8.2 1.7 2.3 2.8 3.1 3.6 4.1 3.1

18 Average D.S.C.R 3.1 times

Gross profit to sales 16.9% 17.1% 16.9% 17.1% 16.9% 16.9% 16.9% 16.9%

Operating profit to sales 10.8% 11.3% 12.0% 13.0% 13.4% 13.9% 14.2% 14.2%

Net profit to sales 8.3% 5.9% 8.0% 8.3% 8.4% 8.6% 8.6% 8.6%

Interest to sales 1.6% 2.3% 1.7% 1.1% 0.7% 0.4% 0.1% 0.1%