As India continues to grow rapidly, the country’s development is primarily dependent on its infrastructure, business sector, trade, and various other factors. Over the past several years, the increasing demand for raw materials coupled with limited supply has led to heightened pollution levels both locally and globally.
This scenario necessitates a shift in business strategies away from traditional sectors like steel, infrastructure, and oil & gas towards more sustainable practices. There is a noticeable surge in the demand for waste management solutions and a pressing need to address excessive consumption patterns.
Additionally, the rising demand for electricity presents an opportunity for the green energy sector to expand and thrive in the coming decade.
Here are the sectors and corresponding stocks poised to thrive over the next decade due to growing demand in the business landscape.
Green Energy Stocks
India ranks third globally in energy consumption and fourth in installed renewable energy capacity, which includes sources like solar, wind, hydro, and geothermal power.
As of March 2024, India has 190.57 GW of renewable capacity, including 45.88 GW from wind, 81.81 GW from solar, 10.35 GW from co-generation, 5 GW from small hydropower, 0.58 GW from waste to energy, and 46.92 GW from large hydro.
The Indian government, through the Ministry of New and Renewable Energy, aims to reach a renewable energy production capacity of 500 GW by 2030. This initiative is set to boost industry growth and foster increased investment in sustainable energy.
To support this goal, the government has introduced initiatives like the National Green Hydrogen Mission, the Production Linked Incentive Scheme for High-Efficiency Solar PV Modules, and the Carbon Credit Trading Scheme.
Major players in the green energy sector include:
Tata Power Limited
The company intends to boost its green energy portfolio to 25 GW by 2030, an almost fivefold increase from the present 5.6 GW, mostly driven by the solar sector.
NTPC Ltd
NTPC plans to add 60 GW of renewable energy capacity by 2032. While NTPC intends to decrease net energy intensity by 2032.
Adani Green Energy Ltd
Adani Green Energy Ltd, India’s largest renewable energy producer, plans to invest an additional $22 billion to expand its capacity more than fivefold by 2030. They aim to build a renewable energy capacity of 45 GW by 2030, contributing to India’s goal of establishing 500 gigawatts of renewable energy capacity by the same year.
JSW Energy Ltd
JSW Energy aims to achieve a capacity of 10 GW by 2025 and 20 GW by 2030 in renewable energy. To realize this goal, the company has pledged to become carbon-neutral by 2050.
Suzlon Energy Ltd
The Suzlon Group is a global leader in renewable energy, boasting over 20 GW of wind energy in 17 countries. In India, they lead with a 14 GW wind energy portfolio and have an additional 6 GW capacity worldwide. Their newest product is the 3 MW Series wind turbine.
Waste management sector
India produces 62 million tonnes of waste yearly, with 70% collected, 12 million tonnes treated, and 31 million tonnes going to landfills. By 2030, waste generation is projected to reach 165 million tonnes due to urbanization and changing consumption.
The waste management sector is growing at a 7.5% CAGR (2021-2026) fueled by government initiatives, urbanization, waste management awareness, and infrastructure investments.
The textile recycling market in India is growing due to increased sustainability awareness, government support, and a focus on circular economy and resource efficiency.
Eco Recycling Ltd
Eco Recycling Ltd is an e-waste management company offering comprehensive services including reverse logistics, data destruction, and IT asset disposition (ITAD). With plans to invest up to Rs 1,000 million (USD 25 million) over three years, the company is expanding its world-class facilities globally.
Gravita India Ltd
Gravita India Ltd specializes in Lead, Aluminum, and Plastic recycling, along with Turnkey projects. In 2022, their Ghanaian subsidiary, Recyclers Ghana Limited, started recycling waste rubber with a 6,000 MTPA capacity.
Gravita India also introduced a pyrolysis unit at its Tanzanian subsidiary in May 2023, initially with a 3,000 MTPA capacity, aiming to double it to 6,000 MTP
Va Tech Wabag Ltd
Va Tech Wabag Ltd designs, installs, and manages water treatment plants globally. The company si establishing 100 Bio-CNG plants to harness sewage treatment potential for Bio-CNG production, reducing fossil fuel use and greenhouse gas emissions in transportation and industry.
Felix Industries Ltd
Felix Industries Ltd specializes in wastewater treatment, water recycling, and waste management. Recently, they signed an MoU to advance research and development in green hydrogen production and solar energy.
EMS Ltd
EMS Limited, based in Delhi, is a multi-disciplinary EPC company specializing in turnkey services for water, wastewater, and domestic waste treatment facilities, offering complete services from engineering to installation.
Recycling sector
India’s recycling sector is growing rapidly, with a 16.11% CAGR in value and 18.15% in volume over the past seven years. Although it lags behind international standards, the government is promoting recycling through initiatives like the EPR scheme, Battery Waste Management Rule, and NREP.
Major players in the recycling sector include:
Ganesha Ecosphere Ltd
Ganesha Ecosphere Ltd specializes in recycling PET bottle waste, transforming it into rPET fiber and yarn for manufacturing clothing, textiles, and automotive upholstery. They are a leading PET waste recycling company in India, producing recycled spun and dyed texturized yarn.
Ganesha Ecosphere targeting a ₹1,700-1,900 crore revenue in FY2025, sustained by expanding bottle-to-bottle capacities and targeting a 20-22% CAGR over the next 3-4 years. Additionally, they plan to grow their higher-margin bottle-to-bottle product range.
Organic Recycling Systems Ltd
Organic Recycling Systems Ltd specializes in recycling alcoholic and non-alcoholic beverage waste, including beer, wine, and energy drinks. They also recycle food byproducts into animal feed, compost, mulch, and fertilizers.
Baheti Recycling Industries Ltd
Baheti Recycling Industries Ltd is an Indian company specializing in processing aluminium-based metal scrap and manufacturing aluminium alloy ingots, deox, and Ferro alloys for various industries from processed scrap metals.
Written by Omkar Chitnis
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