ebizwire_october_2012 indian ewaste industry

7/30/2019 Ebizwire_October_2012 Indian eWaste Industry

1/12

F o r m o r e i n f o o n B u s i n e s s s e t u p v i s i t w w w . s t a r t b i z i n d i a . i n

P a g e | 1 For Business setup queries email at

[email protected] or call at 011 40622249

Insight

Biz India News 2

Biz Policy Updates 3

The Indian E-waste Industry 5

Business Idea of the Month 9

StartBizIndia Discussion Platform 10

Upcoming Business Summit 11

Contact us 12

eBizWireVol. I Issue. IX, October 2012

Industry of the Month

E-waste Industry in

India
http://www.startbizindia.in/http://www.startbizindia.in/http://www.startbizindia.in/mailto:[email protected]:[email protected]:[email protected]://www.startbizindia.in/


2/12




India & New Zealand sign a

document for cooperation in Civil

Aviation

Mercedes launches first Indian made

SUV

Blackstone puts USD 100 million in

International Tractor Limited

HDFC reaches its NRI customers in

Abu Dhabi by opening a

representative office

India and Austria sign Memorandum

of Understanding for tech

cooperation

India ranked the 5th

best in the

World for growing businesses

To develop training and technical cooperation in the civil aviation sector,

the New Zealand and Indian Governments signed an Arrangement of

Cooperation on Civil Aviation. Not only a joint committee will be formed

to develop a plan of cooperation, it has been decided that the

cooperation will include exchange of experts, acceptance of licenses,

aeronautical products and aviation services.

Mercedes has launched its SUV ML 250 CDI which has been locally

assembled in India at its Chakan plant, near Pune. India is the only

country apart from USA where this car is being produced. Production of

other models ML 350 CDI and those belonging to the GL class will soon

follow. Priced at Rs 46.5 Lakh, the cars power train and axles are being

sourced locally.

Blackstone Capital Partners (Singapore) has acquired a 12.5% stake in

International Tractor Limited (ITL) in order to aid the acquisition plans of

ITL for at least two companies in Europe. In India the Company holds

10% of the market share and is dominated by other players like

Mahindra and Mahindra and Escorts.

Staying true to its commitment to provide world class banking facilities,

HDFC has opened its second representative office in UAE in Abu

Dhabi. The bank has its other office situated in Dubai. The office will be

providing various services to the NRIs like facilitation of opening NREaccounts in India, remittance services, fixed deposits in India.

India and Austria signed a MoU on technology cooperation in shipping

and ports infrastructure. Newer technologies used in Austria for Internal

Ship and Port Security, use of radio frequency identification in logistics,

transport planning, optical character recognition will be used in the

Indian shipping sector. Apart from this, various other technologies will

be developed.

As per the Grand Thornton Global Dynamism Index, India sits at the

Worlds 5th position for dynamic growing businesses. The index chose 5broad areas: Business operating environment, Science & technology,

Labour & Human Capital, Economics & Growth and the Financing

environment. Argentina, China, Uruguay and Chile were in the top 4.

BizIndiaNews Headlines


3/12




BizPolicyUpdates

FDI conditions for investment in

Single Brand Product Retail Trading

Reviewed

FDI up to 51% permitted in Multi Brand

Product Retail Trading

Foreign Airlines permitted to invest up

to 49% in the Indian Civil Aviation

Companies

A series of reforms have been initiated by the Indian Government in the

Foreign Direct Investment Policy. The reforms have been brought about

majorly through reviewing of the existing policy and are directed towardsits liberalization.

The Government reviewed its FDI policy concerning the single brand

product retailing and brought about a few changes in the terms and

conditions while keeping some of them unchanged. It notified that it

shall no more be necessary for the investor and the owner of the brand

to be the same person. However, now only one non-resident entity

shall be allowed to be an investor.

Also, wherever an FDI proposal will involve an investment of more

than 51% by the foreign investor, at least 30% of the value of goods

shall be sourced from India, preferably from MSMEs, village &

cottage industries, artisans and craftsmen. It has also been clarified

that retail trading by mode of e-commerce shall not be allowed

After a lot of deliberations, the much awaited decision has been made

to allow FDI in Multi-Brand Retailing. There are various restrictions

which the government has imposed which are only of a regulatory

nature. Where the government has fixed the minimum FDI to be at

least US$ 100 million, it has also mandated to use within 3 years at

least 50% of the total investment for capital expenditure on

processing, manufacturing, distribution, design, quality control,

logistics, warehousing and other such back end infrastructurefacilities.

The government has also set the eligibility criteria for cities and states

on the basis of their population to house the retail outlets. However,

the State and the Union Territory Governments shall have the first call

in taking up the implementation of policy

Until now, foreign airlines were allowed to invest only in cargo airlines,

helicopters and seaplanes. The government has moved a step ahead

and has allowed the foreign airline companies to invest in Indian

companies operating in the Civil Aviation Sector to the extent of 49%.

The investments will have to be made through the Government

approval route and will have to comply with relevant regulations of

SEBI such as the Issue of Capital and Disclosure Requirements

Regulations (ICDR) and the Substantial Acquisition of Shares and

Takeovers Regulations (SAST).

The policy however, will not be applicable to M/S Air India Limited

LegalHeadlines


4/12




Liberalization of the policy on ForeignInvestment in companies operating in

the Information and Broadcasting

Sector

FDI now permitted in Power Exchanges

Relaxation in Capitalization norms for

subsidiaries of Foreign Owned NBFCs

The Ministry of Commerce & Industry revised the foreign investment

limits in companies engaged in this sector. For companies providing

services regarding Teleports, DTH (Direct to Home); cable networks

operating at all levels, network up-gradation and Mobile TV, FDI up to

49% shall be allowed through the automatic route. For any investment

beyond that and up to 74%, Governments approval will be required.

FDI up to 49% will now be allowed in Power Exchanges under the

Central Electricity Regulatory Commission (Power Market)

Regulations, 2010 after the required Government approval. In the given

49% the Government has given a bifurcation between an FII limit of

26% which shall be permitted through the automatic route and an FDI

limit of 23% permitted through the Government approval.

Until now, 100% foreign owned NBFCs having a minimum

capitalization of US$50million were allowed to set up subsidiaries for

specific NBFC activities without bringing in additional capital and

restriction on the number of operating subsidiaries.

On the October 3rd, 2012 the Government notified that now those

Indian companies also which are registered as NBFCs but are not

100% foreign shall be allowed the same privileges if they have at least75% foreign investment and a minimum capitalization of US$ 50

million.

BizIndiaNews LegalHeadlines


5/12




This era is a witness to the most technologically advanced generationswhich the earth has ever borne: Generation X, the ones that saw light of

the day in 1960s and 70s; Generation Y which was born in the 80s and the

90s; and finally the Generation Z that is right now enrolled in schools and

colleges. The audio cassettes, calculators, floppy disks, walkmans of the

60s and 70s gave way to Windows and Apple Macintosh, cell phones,

Pentium processors and Internet in the 80s! All these have eventually

given way to things like gaming consoles, e-book readers and DVD

players, things which we cannot imagine our lives without.

But the rate at which the technology advances and the rate at which these

products are gaining popularity and demand, its very easy to switch over

to the next version thats launched in the market. What do we do aboutwhat thats left behind? Do we know that all that just piles up together as

something that our planet cannot process on its own?

The Ministry of Environment and Forests has defined E-Waste as

waste electrical and electronic equipment, whole or in part or rejects from

their manufacturing and repair process, which are intended to be

discarded. It has also defined the Electrical and electronic equipment

as equipment which is dependent on electrical currents or electro-

magnetic fields to be fully functional.

Our lives, if you carefully notice are filled with electronic items. Lets start

with teenagers. Whatever activities that will come to your mind as soon as

you say teenager can be directly or indirectly related to technology. Did

you just say late nights? Whats the reason? Late night gossips over the

PHONE, internet surfing on the COMPUTERS, listening to music on the

MP3 PLAYERS, playing video games using the latest GAMING

CONSOLES or even reading our favorite book on our TABLETS or E-

BOOK READERS that we just love to show off. If you move over to other

people in the family youll find our lives revolve around technology. Food

processors, washing machines, televisions, vacuum cleaners, fans, lights,

invertors! The list is endless!

We are very much aware that the bodies of all of these products are madeof plastic or other material that is non biodegradable. Not only the used

items cause unnecessary clutter, they are harmful for the environment if

disposed off in an inappropriate way. And this very fact forms the premise

of a thriving industry!

Why is recycling required in the first place?

Recycling as an activity is not just a statutory requirement arising from

rules and regulations as made by the Government, it is even necessary for

the businesses from their image point of view. Big organizations producing

electronic products have a brand to maintain. Going by the social

responsibility they have towards the people and the environment around

E-wasteIndustryinIndia


6/12




E-wasteIndustryinIndiathem, the organizations have a need to work hard to reduce and limit the

harm they might expose that environment to. Just like the factories have to

take care of the chemical and areal effluents, they have to take care of thescrap that they produce or the consumers produce as an end result of the

use of the product manufactured by their organization.

Apart from that, the need for recycling is pushed by monetary

considerations. Some materials may be very costly to produce from the

scratch. Recycling can enable the businesses to recycle a particular

material and use that processed material as an input to their own products

manufacture. For example, a handicrafts entity may want to make

notebooks and diaries made up of rugged looking paper. That entity

instead of producing paper from scratch can recycle newspapers and

produce hand-made paper instead and also reduce the cost.

The Unorganized sector in the Industry

The E-waste industry by and large operates in an unorganized format as of

now. Though the industry is lucrative for small dwellers that operate, it is a

threat to the countrys environment as well. Since the legal regulations are

a comparatively newer advancement, most of the e-waste in India is

dismantled and recycled by hand using the limited technology that is

available.

The industry is however moving towards corporatization with biggercompanies who see a profit here and the E-waste (Management and

Handling) Rules, 2011 which came into effect on 1st May 2012, also

favours these companies due to the access to better technologies that

these companies are capable of.

According to Centre for Science and environment (CSE), more than

90% of the e-waste generated lands up with the unorganized market that

processes most of it. ASSOCHAM says that only 4.5% of Indias e-waste

is recycled. To add to the agony, e-waste from developed countries like

USA and Japan is also brought into India in the name of charity.

The Downside of the Unorganized Sector

Various e-waste centers exist majorly in Delhi, Meerut, Ferozabad,

Chennai, Bangalore and Mumbai. These centers have a typical scrap yard

set-up where the workers are not amply protected. The waste is discarded

in the stereotypical burn-the-waste methodwhich exposes them to toxic

gases that they themselves arent aware of. What however they do

succeed in doing is extracting metals like aluminium, platinum, gold,

cadmium, mercury and lead while they dismantle it.

E-waste (Management and Handling)

Rules, 2011 in effect since May 1, 2012

Less than 5% of the e-waste produced

by India is recycled

E-WASTE INDUSTRY IN INDIA

UNORGANIZED:

Junk dealing set-ups who

dismantle e-waste to

extract metals and burn

the rest of the material,

unaware of the toxins

ORGANIZED:

Emerging entrepreneurs

and existing companies

who have a more formal

system in place for dealing

with e-waste


7/12




Prospects of Advancement: Opportunities that lie ahead

Since the technologies and the processes with the low-scale e-waste

recycling units are very limited, bigger entities are slowly realizing the

potential that this industry has to offer. Due to this, the industry is slowly

moving in the direction of becoming organized.

The new E-waste (Management and Handling) Rules, 2011 have a lot of

provisions that are favourable to more formal set ups than the unorganized

and informal recyclers. More players will enter slowly but for those who do;

the first mover advantagewill definitely be accrued.

According to ASSOCHAM, India generates over 4.4 lakh tones of e-

waste annually and this figure grows at about 20% compounded annually!So, there is a lot of waste to be taken care of. It is mostly the computer

equipment that causes a huge increase in the e-waste generated with

almost 68% waste coming from it. The Telecom equipments account for

12% of the whole Indian e-waste. With 8% of the waste coming from

electricals, medical equipments are only 7% of the total waste and rest of

the 5% is common household equipments.

How the bigger set ups are going to help is that with better facilities, these

entities will be able to reduce the chunk of e-waste that eventually goes

into the landfills. Most of the waste can be recycled in redeployed and

hence reused. Proper dismantling and recycling processes for the pile that

cannot be restored any further will ensure their proper treatment, removal

and treatment of toxins in the safest way possible and disposal of only that

portion that cannot be further treated.

Companies playing role in lowering the impact caused by their

products:

Some big companies born in India are upfront with their e-waste initiatives

running successfully for a few years now. Such a help from the producers

themselves has not only lead to customer satisfaction but

ensures that the used products are properly disposed off.

HCL: The E-waste policy of HCL does not begin at the end of a

products life at consumers side but from the very beginning of the

manufacturing process. HCL designs its products in a way that they

can easily be dismantled later on. The company has even enabled the

customers to lodge an e-waste collection request online and makes

sure that the products are shipped with details about its collection

centers. [Source:http://www.hclinfosystems.in/e-waste-management-initiative.htm]

Wipro: Wipro is another Indian company that has a successful e-waste

management programme. It has a chain of 19 collection centers

throughout the country and even has a pick-up facility for its

customers. It has a green helpline through which customers can make


68%

12%

8%

7%5%

E-waste

Computer Equipment

Telecom Equipment

Electricals

Medical Equipment

Household e-waste

-Based on data by ASSOCHAM
http://www.startbizindia.in/http://www.startbizindia.in/http://www.startbizindia.in/mailto:[email protected]:[email protected]://www.hclinfosystems.in/e-waste-management-initiative.htmhttp://www.hclinfosystems.in/e-waste-management-initiative.htmhttp://www.hclinfosystems.in/e-waste-management-initiative.htmhttp://www.hclinfosystems.in/e-waste-management-initiative.htmmailto:[email protected]://www.startbizindia.in/


8/12




enquiries regarding disposal of e-waste. Wipro takes complete physical

and financial responsibility regarding recycling of all products under its

brand [Source:http://www.wiprogreentech.com/ewaste_management.html]

The E-Waste (Management and Handling) Rules, 2011

The rules have been notified to ensure that the impact on the environment

caused by the e-waste is controlled, in the first instance and then

minimized.

Applicability: The rules have been made applicable to every producer,

consumer or bulk consumer, collection centers, dismantlers and recyclers.

Though the responsibility of a consumer in the given rules has been hoped

to be fulfilled with the consumers conscience, but for a producer, an

extended responsibility of the used products of its company has been

prescribed.

Non-Applicability:The rules are not applicable to MSMEs, batteries and

radioactive wastes

Some of the salient features of the rules are:

1. Defined responsibilities of the producer, the collection centers,

consumer, dismantler and recycler.

2. Separate Authorization and Registration.

3. Requirement of maintaining a record of all the e-waste handled.

4. Requirement of Annual Return regarding the e-waste collected,

handled or recycled as the case may be.

5. Storage of untreated e-waste allowed for a maximum of 180 days.

6. A mandatory No-objection certificate from the State Pollution

Control Board in case of Inter-state e-waste transport.

The recycling facilities in India are still at a nascent stage but given the

quantum of e-waste produced every year, it is not hidden that theres a

huge need which is currently not appropriately addressed. With not a lot of

companies operating in this sector, one doesnt come across known

names. The industry is already a home to few start ups and similarly moreentrepreneurs are expected to pitch in. Given the scope of the industry

owing to environmental needs, it is hoped that this sector will see a lot of

growth. Who knows? In times to come the sector might flourish enough to

invite foreign investment and collaborations!

http://www.startbizindia.in/http://www.startbizindia.in/http://www.startbizindia.in/mailto:[email protected]:[email protected]://www.wiprogreentech.com/ewaste_management.htmlhttp://www.wiprogreentech.com/ewaste_management.htmlhttp://www.wiprogreentech.com/ewaste_management.htmlhttp://www.wiprogreentech.com/ewaste_management.htmlmailto:[email protected]://www.startbizindia.in/


9/12




BusinessIdeaof the Month

E-waste Collection Center

One would think that when it comes to e-waste, hardly any

business can be set up unless one comes along with a very

charitable thinking or is very attached to the Mother Nature. In

fact there are so many people who think that any activity that

has to do with environment is the forte of our Government.

The E-waste (Management and Handling) Rules, 2011 talk

about the extended responsibility of the producer. They point

to the companys responsibility set up a system by which it can

collect back the used electronic products when the consumer is

ready to dispose them. Big companies like Dell, HCL and Nokia

have a take back policy through which they collect tones of

waste products every year so that they can be acted upon

accordingly. However, there are other companies who are

struggling to come up with such policies or for whom such

policies are completely nonexistent.

So pull up your socks and get thinking! Why not help the

companies (and in process the Government, common people

and Environment also) by setting up your own collection centre

so that you can act as an intermediary between theorganization and its consumers? You can charge a commission

based on how many consumers you cater to for a company. But

since the said rules are not applicable to MSMEs, you will only

be operating under the umbrella brand of a bigger company.

Since Government is itself calling for entrepreneurs to set up

such facilities, the electronic companies will be on a look out for

volunteer start ups like you!

You will need a storage space of your own and of course have

to approach the companies you target so that they both parties

settle into a contract. After that you will have to advertise

accordingly so that consumers know that they now have a

collection centre near them.

You can even provide a pick-up facility for far-away customers

depending on how much it costs you. This venture is bound to

work because the people are ever ready to dispose the junk

lying in their homes, and given that you give them the ease of

location, they will be more than happy to come to you.

Voila! You have a new business venture for yourself.


10/12




dfca

Mr. Bagchi while recently travelling to Bangalore met a person who

was associated with a community set-up that recycled commonhousehold non-biodegradable waste. The conversation with that

person was enough to light a spark in Mr. Bagchis mind who for a

long time wanted to do something about the harm being done to the

environment. He thought of setting a large scale recycling unit

especially focusing on e-waste which could cater to the needs of not

just one community but in fact a few towns and cities. How should he

go ahead with the setting up of that facility?

ANSWER: The first and foremost which Mr. Bagchi needs to keep in mind

is the legal requirements which have to be taken care of before setting up

of any business. He will have to undertake the following general steps:

1. Deciding the name of the business

2. Choosing the business structure (There are various options like

Sole proprietorship, Partnership, Limited Liability Partnership,

Company)

3. Registration with the Income Tax authority (i.e. obtaining PAN)

4. Opening Bank Account.

But, not only will Mr. Bagchi have to take care of all business set up

formalities depending upon the structure he chooses, he will also have to

take care of regulations formulated specifically for proper handling of E-

waste by the Ministry of Environment and Forests.

Before planning to set up a recycling unit, the e-waste (Management and

Handling) rules, 2011 require you to seek an authorization and then a

registration.

Authorization: Authorization is granted only when the applicant has

appropriate facilities, technical capabilities and proper equipment to handle

e-waste safely. This authorization shall be obtained from the State

Pollution Control Board (SPCB) or the Pollution Control Committee in

Union Territories.

Registration:For registration, an authorized recyclerneeds to have the

consent to establish granted by the SPCB and registration with the District

Industries Centre (State bodies under Ministry of Micro, Small and Medium

Enterprises set up to facility the business development) or a similar

Government body before going ahead with the application.

The registration will then be granted with 90 days and will be valid for two

years after which Mr. Bagchi can apply for its renewal. Apart from this,

once the recycling business is put into action, Mr. Bagchi will have to be in

thorough compliance of not only the above mentioned rules but also the

Guidelines for Environmentally Sound Management of E-waste, 2008

StartBizIndiaDiscussionPlatform


11/12




IFSEC India Exhibition, 2012 (International Fire And Security

Exhibition)

Organized by UBM India Pvt. Ltd, it will be the largest security

exhibition cum trade show of India spread over a course of 3 days. An

intense networking session, the event will see national and international

leaders in this arena. Besides presenting an opportunity to present

security products and equipments for commercial security, the exhibit

will also highlight security services and technologies for the government

security.

Date: November 1-3, 2012

Venue: India Expo Centre and Mart, Greater Noida, Uttar Pradesh

6th Renewable Energy India 2012 Expo

This exposition will be held to serve the Indian renewable energy

market. It shall focus on improvising and highlighting environment-

friendly renewable resources such as solar energy, wind, biomass, bio

fuel, small hydro, geothermal and energy efficiency.


Venue: Indian Expo Centre, Greater Noida, NCR of Delhi

TIE ISB Connect 2012

Organized by the TIE, Hyderabad chapter and Wadhwani Centre for

Entrepreneurship Development, this event hopes to give a common

platform for networking to the aspiring entrepreneurs, early stage

ventures, potential investors and successful entrepreneurs.


Venue: ISB Campus, Hyderabad

Frost & Sullivans 2012 India Industrial Technologies Summit

Its a summit that will bring together people and discuss the bestpossible practices through which the end users can utilize latest

technologies to employ fewer resources and increase their

competitiveness.

Date: November 27, 2012

Venue: Mumbai

IFSEC India Exhibition, 2012

Renewable Energy India 2012

Expo

TIE ISB Connect 2012

Frost & Sullivans 2012 India

Industrial Technologies Summit

UpcomingBusinessSummit


12/12



Disclaimer:

This paper is a copyright of Corporate Professionals (India) Private Limited. The entire content of thispaper have been developed for the new startups. The author and the Company expressly disclaim alland any liability to any person who has read this paper, or otherwise, in respect of anything, and ofconsequences of anything done, or omitted to be done by any such person in reliance upon thecontents of this paper.

Nitesh Latwal

E: [email protected]

D: +91.11.40622249M: +91 9873521481

Visit us at

A Venture of

D- 38, 1st

Floor, South Extension, Part I

New Delhi 110049

T: +91.11.40622200 F: +91.11.40622201


Ritika Kharbanda


D: +91.11.40622246M: +91 9899180593

BizIndiaNews
http://www.startbizindia.in/http://www.startbizindia.in/http://www.startbizindia.in/http://www.startbizindia.in/

ebizwire_october_2012 indian ewaste industry

Documents