India’s tyre recycling industry has significant growth potential to grow ten times in size considering the surging sales and year-on-year growth registered by the domestic automobile industry, with estimates suggesting that the market size could reach Rs. 350 billion in the coming 5 to 10 years.
Presently, the industry is valued at nearly Rs. 35 billion, indicating a potential tenfold increase driven by the expanding automobile sector and improvements in recycling practices.
The continuous expansion of the automobile sector in India is a significant driver for tyre production and, consequently, tyre waste. As vehicle sales rise, the volume of end-of-life tyres is also expected to increase, creating a larger market for recycling operations.
Here are a few companies that are engaged in the tyre recycling:
Hi-Green Carbon Limited
With a market capitalisation of Rs. 645 crores, the stock rose by 4.2 percent on BSE to Rs. 267.85 on Friday.
On a year-on-year basis, the company reported a decline of 10.3 percent increase in revenue from operations, falling from Rs. 78 crores in FY23 to Rs. 40 crores in FY24, while the net profit stood at Rs. 10 crores, decreasing from Rs. 12 crores, reflecting growth of 16.6 percent over the same period.
Hi-Green Carbon Limited, a venture of the Radhe Group of Energy, is engaged in the business of waste tyre recycling and its manufacturing plant operates on a continuous pyrolysis process.
The company specialises in processing and recycling waste hydrocarbons, such as waste rubber, waste tyres, e-waste, and other waste materials to produce hydrocarbon fuel, recovered carbon black, metal scraps, and other residue materials.
GRP Limited
With a market capitalisation of Rs. 1,821.3 crores, the shares of an integrated polymer recycling company rose by 2.2 percent on BSE to Rs. 3,498 on Friday.
GRP is a prominent leader in the recycling sector, known for its expertise in manufacturing reclaimed rubber from used tyres, upcycled polyamide from nylon waste, and engineered products die-cut from end-of-life tyres.
The company transforms end-of-life tyres and rubber waste into premium quality reclaim rubber and moulded products, offering technical advantages and cost savings for various applications in both tyre and non-tyre rubber products.
On a year-on-year basis, the company reported a significant 27 percent increase in revenue from operations, rising from Rs. 99.34 crores in Q1 FY24 to Rs. 126.2 crores in Q1 FY25, while the net profit stood at Rs. 4.4 crores, increasing from Rs. 2 crores, reflecting growth of 120 percent over the same period.
The stock delivered multibagger returns of around 263.2 percent in one year, as well as nearly 176.7 percent returns year-to-date.
The company operates 5 business verticals: Reclaim Rubber, Engineering Plastics, Repurposed Polyolefins, Polymer Composite and Custom Die Forms.
Established in 1974, GRP Limited is engaged primarily in the business of manufacturing reclaim rubber, while its other businesses include power generation from windmills, custom die forms, manufacturing engineering plastics and polymer composite products.
Tinna Rubber and Infrastructure Limited
With a market capitalisation of Rs. 2,917.2 crores, the shares of one of the largest recyclers of End of Life Tyres (ELT) in Asia rose by 2 percent on BSE to Rs. 1,725.95 on Friday.
Tinna Rubber is the first to market and the largest player for Rubberised Bitumen in India. It is also the largest supplier of Micronized Rubber Powder to the tyre & conveyor belt Industry in India and holds the position of the largest manufacturer of Crumb Rubber and Crumb Rubber Modifier (CRM) in the country.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 70 percent from Rs. 80 crores in Q1 FY24 to Rs. 136 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 7 crores to Rs. 16 crores, indicating a rise of nearly 128.6 percent YoY.
The stock delivered multibagger returns of around 320.2 percent in one year, as well as nearly 197.6 percent returns year-to-date.
Founded in 1977, Tinna Rubber & Infrastructure Limited is primarily engaged in the recycling of waste tyres/end-of-life tyres (ELT) and the manufacturing of value-added products.
The company is involved in manufacturing crumb rubber, crumb rubber modifier (CRM), crumb rubber modified bitumen (CRMB), polymer modified bitumen (PMB), bitumen emulsion, reclaimed rubber/ ultrafine crumb rubber compound, cut wire shots, polymer composites etc.
The products are primarily used for making/repairing roads, tyres and the auto parts industry.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
