Whalesbook
Policy Drives India's $21.4 Billion Recycling Boom
India's recycling market is set to surge, projected to reach $21.4 billion by 2030, driven by strong government backing and rising demand for metals. Stricter battery and e-waste regulations, along with rules requiring 10-25% recycled content by FY31, are fueling this growth. This "urban mining" trend is an important move as domestic demand from infrastructure and electric vehicles increasingly pressures raw material supplies.
Jain Resources Scales Up Copper and Antimony Operations
Jain Resource Recycling is a key player in non-ferrous metal recycling, handling copper, lead, aluminum, and plastics. The company has four major expansion projects underway, including moving into higher-margin copper products and a joint venture with US-based C&Y Group for copper scrap. Jain is also acquiring a stake in a Kuwaiti battery scrap plant and using new technology for antimony extraction. Management expects to maintain 40-50% annual growth, with these moves potentially lifting margins by up to 1%. In 9MFY26, Jain Resources saw revenue rise 38% to ₹6,438 crore and net profit jump 65% to ₹281 crore.
Gravita India Plans Major Expansion to 2029
Gravita India, which recycles lead, aluminum, and plastic, operates 13 facilities worldwide. The company is undertaking a ₹1,500 crore capital expenditure plan through FY28 to increase its recycling capacity to over 700,000 MTPA. A major goal is to boost revenue from value-added products (VAP) to over 50% and from non-lead businesses to more than 30% by 2029. Gravita is also exploring new areas like lithium-ion battery and paper recycling. In 9MFY26, revenue grew 9% to ₹3,093 crore, with net profit up 31% to ₹286 crore.
Pondy Oxides & Chemicals Pivots to Diversify
Pondy Oxides & Chemicals (POCL), India's first LME-Registered Lead Brand, is shifting focus to reduce its dependence on lead, which currently accounts for over 95% of its revenue. The company aims to cut lead's share to 65-70% by FY27 by expanding copper, aluminum, and plastics recycling. POCL is also exploring lithium-ion battery and e-waste recycling. Their "Target 2030" plan aims for over 20% revenue compound annual growth rate (CAGR) and more than 15% volume growth. In 9MFY26, POCL reported a record 114% net profit surge to ₹101 crore on a 33% revenue increase to ₹2,007 crore.
Valuation Highlights
Jain Resources shows strong returns (ROCE 19.5%, ROE 27.2%), justifying a higher valuation. Gravita India (ROCE 17.6%, ROE 21.5%) and Pondy Oxides (ROCE 19.5%, ROE 16.9%) also trade at a premium compared to their past. Success will depend on execution for these companies to capture the growing recycling market.