Presented by: Navin Sharma President & CEO Gravita India Ltd.

Transcription

1 Presented by: Navin Sharma President & CEO Gravita India Ltd.

2 Key topics Global Lead Production & Demand Indian Lead Production & Demand End Use Trends Industry Dynamics Regulations Competitive Advantage Suggestions Conclusion

3 Global Scenario

4 Production (million tonnes) Global Lead Production Source; ila-lead.org Year

5 Top Ten Lead Producing Countries

6 Production (million tonnes) Primary Lead Vs Secondary Lead Production Primary Lead Production Secondary Lead Production 0 Year

7 Lead Consumption Pattern BATTERIES Automobiles Industrial Applications Telecom Railways Equipments & Appliances UPS, Inverters New Applications Solar Wind Hybrid Automobiles E-Bikes RADIATION SHIELDING Nuclear Medical PIGMENTS & CHEMICALS (TBLS, DBLS) AMMUNITION & SHOTS SPECIAL ALLOYS (Solders etc.) CABLE SHEATHING MISCELLANEOUS 6% 5% 3% 3% 2% 1% 80% BATTERIES RADIATION SHIELDING PIGMENTS & CHEMICALS AMMUNITION & SHOTS SPECIAL ALLOYS CABLE SHEATHING MISCELLANEOUS Total Lead metal consumption in batteries has increased in the past decade

8 Scenario in India

9 Lead Consumption Pattern in India 17% 3% Batteries Cable Sheathing Alloys, Chemicals 80%

10 Lead Production in India MT MT

11 Lead Production In India MT MT V/s Organized Sector 30 % Unorganized Sector 70%

12 Lead Import in India S. No Commodity Unit (Mar-Sep) 1 Refined Lead MT 96,022 97,961 65,265 2 Lead Alloys MT 12,794 12,242 21,993 3 Re Melted Lead MT 51,306 58,745 32,320 4 Lead Scrap MT 16,069 35,499 15,060 TOTAL MT 1,76,191 2,04,447 1,34,638

13 Industry Dynamics One of the highest battery scrap prices are around $1150/MT - leaves no room for Efficient / Legitimate Recycling. No price protection to recyclers. No hedging tool to protect respectable margins on recycling of Lead. Local industry price norms are not in alignment with international prices. Industry works on opportunity cycle not on a regular manufacturing cycle.

14 Regulations BMHR 2001 Objectives: Recycling Logo Encourage Recycling Public Awareness

15 Strengths

16 Strengths

17 Strengths

18 Strengths

19 Strengths

20 Challenges

21 Challenges Regulations

22 Challenges "The public are not aware of the rules. - Executive, Well know battery manufacturing company. "But our dealers seldom return the old batteries despite reminders. They get more if they pass on the old batteries to unauthorized smelters, - IBMA member. BMHR 2001 "We all thought that the public response to this would be tremendous. Unfortunately, nothing has moved beyond the enactment state," said an Indian Battery Manufacturers' Association (IBMA) source Against demand domestic production is less. The huge supply gap is made good by imports. If proper recycling of lead is done, then imports can be brought down. IBMA Sources

23 Challenges Battery Trader/ Scrap Dealer Organized Unorganized

24 Challenges Highly Fragmented Industry

25 Challenges LME No Support Mechanism

26 Challenges

27 Opportunities

28 Opportunities 353 Lead Waste Recyclers Registered with MOEF/CPCB Allowed Quantity (MTA) No. of Units 40,000-65, ,000-40, ,000-20, ,000 10, <5, *Source: MOEF/CPCB

29 Opportunities Shifting of Manufacturing Activity

30 Opportunities

31 Opportunities RISING GDP GROWTH RATE IN INDIA

32 Opportunities Auto Mission Plan ( ) Turnover in 2016 US $ BILLION (US $ 34 BILLION, 2006) Share in GDP 10% in 2016 (5% in 2006) Investment by 2016 US $ 40 billion Manufacture vehicles & auto components - Domestic & Export markets

33 Opportunities National Solar Mission(India) Installed capacity of 20 GW by 2022 Envisages an investment of $ 20 Billion over the next 30 years Initial investment of $ 943 Millions provided by the Government of India Distribution of 20 Million Solar Lantern in villages. Huge requirement of Lead for off grid Applications

34 Opportunities 20% Shift From Unorganized Sector Will make a growth of 50% in Organized Sector

35 Opportunities Rising Labor Cost in China Average Monthly Wages (Yuan) Source: National Bureau of Statistics, China Statistical Yearbook etc Closure of Lead Battery Manufacturing Plants in China. Since March, have been CLOSED.

36 Opportunities

37 Threats Occupational Health Hazards Environmental Hazards If growth is not handled in a legitimate way then it will destroy our nature

38 Threats Un-Organized recycling Practices Threat to स वच छ भ रत अभभय न

39 Suggestions A Modern and Efficient Lead Battery Recycling Plant can only be justified if supply of used batteries is available at competitive prices and sufficient quantity from local market. The consumers are made aware of regulations under Batteries (Management and Handling) Rules (BMHR), BMHR not applicable to quantity sold to OEM. Same should be bought into BMHR net. One suggestion could be that each battery sold in the market should have BIS mark / ECO Mark so that each unit sold by even a petty shop can be tracked. Alternatively a Bar Code system may be introduced so that each manufacturer ensures selling of batteries with Bar Code and the non compliances at sellers end to be penalized.

40 Suggestions Close working with OEMs ( Battery Manufacturing Companies and Industry segments) Drop Off / Collection centers Buy Back schemes through authorized centres Toll free number concept / Nearest collection centres Import duty reduction on scrap.

41 Who We Are?

42 About Us Leaders in Indian Lead Recycling Industry Global manufacturing footprint Executed Turnkey Eco-friendly Lead Recycling Projects across the Globe Enthusiastic & motivated management team of experienced professionals Around 50% Revenue from International market High Standards of Corporate Governance INDIA

43 Global Manufacturing Facilities KATHUA, INDIA JAMMU, INDIA TRINIDAD & TOBAGO JAIPUR, INDIA NICARAGUA SENEGAL SEZ, JAIPUR, INDIA GANDHIDHAM, INDIA GHANA SRI LANKA MOZAMBIQUE EXISTING PLANTS UPCOMING VENTURES Manufacturing facilities across 7 Countries and 3 Continents.

44 Business Verticals- Manufacturing Product Spectrum Pure Lead of 99.98% purity Lead Alloys Lead Sheets / Lead Bricks Lead Powder & Lead Balls Lead Oxides & Chemicals (Grey Oxide, Red Lead, Litharge)

45 Business Verticals- Turnkey Solutions Manufacturer of Eco-friendly Lead Recycling plants & Pollution Control equipment Turnkey plants established in 40 countries Full compliance with Regulatory, Technical and safety norms Customer Support & Technical Consultancy Project Manageme nt In House installation & Specialized fabrication Design Consulting Permit Processing & Acquisition Structural & Seismic Engineering

46 Conclusion The Indian Lead Recycling industry need to overcome the challenges to travel the extra miles from many miles to go!!!!!

47 Website : info@gravitaindia.com