Business Setup Article : Indian eWaste Industry: eBizwire October 2012

Industry of the Month
“E-waste Industry in
India”

eBizWire
Vol. I Issue. IX, October 2012

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

For more info on Business setup visit www.startbizindia.in

Page |1 For Business setup queries email at
nitesh@indiacp.com or call at 011 40622249

Biz India News Headlines

• To develop training and technical cooperation in the civil aviation sector, India & New Zealand sign a
the New Zealand and Indian Governments signed an Arrangement of document for cooperation in Civil
Cooperation on Civil Aviation. Not only a joint committee will be formed Aviation
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 Mercedes launches first Indian made
assembled in India at its Chakan plant, near Pune. India is the only SUV
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 car’s power train and axles are being
sourced locally.

• Blackstone Capital Partners (Singapore) has acquired a 12.5% stake in
Blackstone puts USD 100 million in
International Tractor Limited (ITL) in order to aid the acquisition plans of
International Tractor Limited
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 reaches its NRI customers in
HDFC has opened its second representative office in UAE in Abu Abu Dhabi by opening a
Dhabi. The bank has its other office situated in Dubai. The office will be representative office
providing various services to the NRIs like facilitation of opening NRE
accounts in India, remittance services, fixed deposits in India.

• India and Austria signed a MoU on technology cooperation in shipping India and Austria sign Memorandum
and ports infrastructure. Newer technologies used in Austria for Internal of Understanding for tech
Ship and Port Security, use of radio frequency identification in logistics, cooperation
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 India ranked the 5th best in the
World’s 5th position for dynamic growing businesses. The index chose 5 World for growing businesses
broad 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.



Biz Policy Updates Legal Headlines
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 towards
its liberalization.

• The Government reviewed its FDI policy concerning the single brand FDI conditions for investment in
product retailing and brought about a few changes in the terms and Single Brand Product Retail Trading
conditions while keeping some of them unchanged. It notified that it Reviewed
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 FDI up to 51% permitted in Multi Brand
to allow FDI in Multi-Brand Retailing. There are various restrictions Product Retail Trading
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 infrastructure”
facilities.

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, Foreign Airlines permitted to invest up
helicopters and seaplanes. The government has moved a step ahead to 49% in the Indian Civil Aviation
and has allowed the foreign airline companies to invest in Indian Companies
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



Biz India News Legal Headlines

• The Ministry of Commerce & Industry revised the foreign investment Liberalization of the policy on Foreign
limits in companies engaged in this sector. For companies providing Investment in companies operating in
services regarding Teleports, DTH (Direct to Home); cable networks the Information and Broadcasting
operating at all levels, network up-gradation and Mobile TV, FDI up to Sector
49% shall be allowed through the automatic route. For any investment
beyond that and up to 74%, Government’s approval will be required.

• FDI up to 49% will now be allowed in Power Exchanges under the
Central Electricity Regulatory Commission (Power Market)
FDI now permitted in Power Exchanges
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
Relaxation in Capitalization norms for
capitalization of US$50million were allowed to set up subsidiaries for
subsidiaries of Foreign Owned NBFCs
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 least
75% foreign investment and a minimum capitalization of US$ 50
million.



E-waste Industry in India

This era is a witness to the most technologically advanced generations
which 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, it’s very easy to switch over
to the next version that’s launched in the market. What do we do about
what that’s 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. Let’s 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? What’s 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 you’ll 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 made
of 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



them, 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 the
scrap 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 product’s
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. E-WASTE INDUSTRY IN INDIA

The Unorganized sector in the Industry
UNORGANIZED:
The E-waste industry by and large operates in an unorganized format as of
Junk dealing set-ups who
now. Though the industry is lucrative for small dwellers that operate, it is a dismantle e-waste to
threat to the country’s environment as well. Since the legal regulations are extract metals and burn
a comparatively newer advancement, most of the e-waste in India is the rest of the material,
unaware of the toxins
dismantled and recycled by hand using the limited technology that is
available.

The industry is however moving towards corporatization with bigger ORGANIZED:
companies who see a profit here and the E-waste (Management and
Emerging entrepreneurs
Handling) Rules, 2011 which came into effect on 1st May 2012, also and existing companies
favours these companies due to the access to better technologies that who have a more formal
these companies are capable of. system in place for dealing
with e-waste
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 India’s 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. E-waste (Management and Handling)
Rules, 2011 in effect since May 1, 2012

The Downside of the Unorganized Sector
Less than 5% of the e-waste produced
Various e-waste centers exist majorly in Delhi, Meerut, Ferozabad, by India is recycled
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 method which exposes them to toxic
gases that they themselves aren’t aware of. What however they do
succeed in doing is extracting metals like aluminium, platinum, gold,
cadmium, mercury and lead while they dismantle it.




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; E-waste
the first mover advantage will definitely be accrued.
Computer Equipment
According to ASSOCHAM, India generates over 4.4 lakh tones of e- Telecom Equipment
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 Electricals
equipment that causes a huge increase in the e-waste generated with Medical Equipment
almost 68% waste coming from it. The Telecom equipments account for
Household e-waste
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.
5%
How the bigger set ups are going to help is that with better facilities, these 7%
entities will be able to reduce the chunk of e-waste that eventually goes 8%
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 12%
and treatment of toxins in the safest way possible and disposal of only that
portion that cannot be further treated. 68%

Companies playing role in lowering the impact caused by their
products:
-Based on data by ASSOCHAM
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
product’s life at consumer’s 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



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 consumer’s 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 there’s a
huge need which is currently not appropriately addressed. With not a lot of
companies operating in this sector, one doesn’t come across known
names. The industry is already a home to few start ups and similarly more
entrepreneurs 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!



Business Idea of 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 company’s 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 the
organization 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.



StartBizIndia Discussion Platform
Mr. Bagchi while recently travelling to Bangalore met a person who
was associated with a community set-up that recycled common
household non-biodegradable waste. The conversation with that
person was enough to light a spark in Mr. Bagchi’s 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
dfca
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 recycler needs 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


P a g e | 10 For Business setup queries email at

Upcoming Business Summit

 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
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Organized by the TIE, Hyderabad chapter and Wadhwani Centre for
Entrepreneurship Development, this event hopes to give a common  Renewable Energy India 2012
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 TIE ISB Connect 2012
Venue: ISB Campus, Hyderabad
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 Frost & Sullivan’s 2012 India Industrial Technologies Summit Industrial Technologies Summit

It’s a summit that will bring together people and discuss the best
possible practices through which the end users can utilize latest
technologies to employ fewer resources and increase their
competitiveness.

Date: November 27, 2012
Venue: Mumbai



Biz India News

Nitesh Latwal Visit us at

E: nitesh@indiacp.com

D: +91.11.40622249
M: +91 9873521481 A Venture of

st
D- 38, 1 Floor, South Extension, Part I
New Delhi – 110049
Ritika Kharbanda

E: ritika@indiacp.com T: +91.11.40622200 F: +91.11.40622201
E: info@startbizindia.com
D: +91.11.40622246
M: +91 9899180593

Disclaimer:

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


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Business Setup Article : Indian eWaste Industry: eBizwire October 2012