Eco Recycling Ltd to immensely benefit from shift in manufacturing base by Global Giants to India

Eco Recycling Limited (Ecoreco) is quite enthused while updating its esteemed stakeholders about the emerging opportunity for Eco Recycling's business on account of visible shift of manufacturing base by Global Giants to India. The recent outbreak of pandemic-Covid-19 has forced global OEM's to de-risk their manufacturing concentration away from neighboring country. India has emerged as the best choice and thereby stands to gain substantially as the major manufacturing hub for various communication, computation & electrical devices.

To avail such opportunity, the Government of India has also' taken several steps for promoting manufacturing in India for achieving 'Atmanirbharata' for the Country and also become exporter to other countries. As many as 22 domestic and international firms-including Apple's contract manufacturers and Samsung, Lava, Dixon, etc. have lined up aggressive plans for setting up manufacturing base for production of mobile phones in India. The Government has received proposals by these manufacturers under the INR 41,000 crores Production Linked Incentive (PLI) Scheme.

With such huge incentive and corresponding investment for production of the above devices by the Global Giants has proportionately enhanced opportunity for e-waste business for India. This coupled with strict adherence of the already prevailing Extended Producers Responsibility (EPR) Policy, is further likely to generate significant volumes and business for E-waste Recyclers. Eco Recycling Ltd, with an established track record and technologically advanced processes to recycle e-waste in environment friendly way is rightly placed to garner substantial market share in the space.

Commenting on the increasing e-waste recycling opportunity, Mr. B K Soni, Chairman & Managing Director said, "We are very optimistic about the incremental opportunity and changing dynamics in the e-waste recycling business. Ecoreco is fully geared to grab these opportunities and emerge as one of the Global players in the e-waste recycling space. The recent investment lined up under the Government's PLI scheme is expected to produce around USD 150 billion of mobile phones over the next five years in India. This additional production may generate around USD 6.0-7.5 billion worth of e-waste ready for recycling."

He further added, "Ecoreco is all set to grab a substantial market share from both domestic and international markets in the e-waste recycling space. Further, there is an immense opportunity from other electrical devices also as Government enforces EPR more stringently. Considering of all the emerging opportunities, Ecoreco has lined up further investment to meet the surge in volumes. The company is raising funds to the tune of INR 16 Crores and the promoters are infusing INR 10 Crores into the company. We are looking forward for very exciting times for the company in coming years, which should accelerate its growth both in terms of revenue and profitability."

Shares of ECO RECYCLING LTD. was last trading in BSE at Rs.60.25 as compared to the previous close of Rs. 58.5. The total number of shares traded during the day was 7448 in over 150 trades.

The stock hit an intraday high of Rs. 61.4 and intraday low of 60. The net turnover during the day was Rs. 453610.

Source : Equity Bulls

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