India’s waste management industry is experiencing healthy growth, driven by a rising population and increased industrial activity. This sector is relatively new to the country but has seen massive expansion in recent years. Waste management programs have significantly ramped up, focusing on the collection and disposal of waste from households and industries.
The goal is to process and recycle the waste into eco-friendly products. In this article, we are looking at India’s future waste management, some of the key players in this industry, and their financial and future plans.
Table of Contents
Indian Waste Management Industry Overview
India is the 5th largest economy in the world, and its population has been steadily increasing over the years. This rise in population has led to a corresponding increase in waste generation. Annually, India produces more than 62 million tons of waste. Of this, 43 million tons are collected, with 12 million tons treated before disposal, while the remaining 31 million tons are dumped in landfills.
With rapid urbanization, industrialization, and economic growth, India’s waste generation is projected to soar to 165 million tons by 2030. The Indian waste management market is expected to grow significantly, from $12.90 billion in 2024 to $17.30 billion by 2029, at a compound annual growth rate of 6.10% during this period. Currently, only 30% of the 75% of recyclable waste is actually recycled, highlighting a critical area for improvement in waste management practices.
The Growth of Entrepreneurship in India’s Waste Management Industry
Every day, India produces a substantial amount of waste, posing challenges for management and impacting the environment and individual health. Effective waste management is crucial for businesses to maintain a clean and green environment. Recognizing the importance of this issue, the government has taken serious action to improve waste management practices.
This creates a golden opportunity for starting a waste management business. Many startups are now coming forward with innovative solutions to tackle waste management challenges, marking a new era of eco-friendly entrepreneurship in India.
Essential Investments for Sustainable Waste Management
Investing in waste management is crucial for several reasons. Firstly, it helps keep the environment clean by ensuring that waste is disposed of properly, thereby reducing pollution and the negative impacts on human health and the ecosystem. Effective waste management also conserves energy by promoting recycling and reducing the need for new raw materials. Additionally, it generates employment opportunities in various sectors, from collection to disposal, contributing to economic growth.
Furthermore, waste management practices incorporating recycling and composting can lead to sustainable use of resources, reducing the strain on natural resources and minimizing the environmental impact of waste disposal. Overall, investing in waste management is essential for maintaining a healthy environment and promoting sustainable development.
Top Waste Management Companies In India
Eco Recycling
Eco Recycling was established in August 1994. It is India’s first and leading E-Waste management company. The company is engaged in the business of recycling electronic waste, data destruction, and the recycling of fused lamps. The company has served more than 120 countries in the world. The production of recycling capacity is to be 7200 MTPA.
The company has established a new recycling capacity of 18,000 MTPA. It will be targeting 50% capacity utilization by March 2025 and close to 100% by March 2026. Eco Recycling Limited’s revenue has increased from 18 Cr. to 28 Cr. in FY24 and grew by 55.56%. The net profit is to be 18 crore in FY24. Revenue and net profit grew at a CAGR of 23.59% and 105.98%, respectively, over the last 4 years.
Some of the key financial metrics of Eco Recycling Limited are given below
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹763.65 | Market Cap (Cr.) | ₹1,471.38 |
| EPS (TTM) | ₹8.40 | Stock P/E (TTM) | 90.77% |
| ROE (TTM) | 24.79% | ROCE (TTM) | 28.41% |
| ROA (TTM) | 20.86% | P/B Ratio | 62.09 |
| Debt to Equity | 0.09 | Current Ratio | 4.82 |
| Promoter Holding (%) | 73.35% | FII Holding (%) | 1.18% |
| Operating Profit Margin | 81.75% | Net Profit Margin | 65.04% |
Antony Waste Handling Cell
Antony Waste Handling Cell was incorporated on January 17, 2001. It is engaged in the business of mechanical power sweeping of roads, collection and transportation of waste, waste to energy projects, and construction, operation, and maintenance of integrated waste management. The company is one of the top five players in the Indian municipal waste management industry.
Antony Waste Handling Cell Limited has operated 24 ongoing projects in 9 states. The company is currently handling waste of almost 5800 tonnes per day and more than 5 million tonnes annually.
Antony Waste Handling Cell Limited’s revenue has increased from 856 crore to 873 crore in FY24 and grew by 1.99%. The net profit is to be 100 crore in FY24. Revenue and net profit grew at a CAGR of 17.95% and 20.77%, respectively, over the last 4 years.
Some of the key financial metrics of Antony Waste Handling Cell Limited are given below
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹582.45 | Market Cap (Cr.) | ₹1,654.68 |
| EPS (TTM) | ₹2.22 | Stock P/E (TTM) | 262.61% |
| ROE (TTM) | 2.28% | ROCE (TTM) | 3.83% |
| ROA (TTM) | 20.86% | P/B Ratio | 7.8 |
| Debt to Equity | 0.19 | Current Ratio | 5.12 |
| Promoter Holding (%) | 46.07% | FII Holding (%) | 11.94% |
| Operating Profit Margin | 17.65% | Net Profit Margin | 11.53% |
VA Tech Wabag
VA Tech Wabag was an Indian multinational company established in 1924. The company is engaged in the business of water treatment field. It has operating principal activities including design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants.
VA Tech Wabag Limited has completed more than 6000 projects and works across more than 30 countries. The company mainly operates in the water and energy segments. In water segments, the company has desalinated water of 1.2 million per day and recycled water of 2.5 million per day. In energy segments, the company has more than 40 MW of green energy per day.
VA Tech Wabag Limited’s revenue has decreased from 2960 Cr. to 2856 Cr. in FY24 and is down by 3.51%. The net profit is to be 250 crore in FY24. Revenue and net profit grew at a CAGR of 2.80% and 31.35%, respectively, over the last 4 years.
Some of the key financial metrics of VA Tech Wabag are given below.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹1,316.30 | Market Cap (Cr.) | ₹8,186.44 |
| EPS (TTM) | ₹39.49 | Stock P/E (TTM) | 33.33% |
| ROE (TTM) | 13.50% | ROCE (TTM) | 16.08% |
| ROA (TTM) | 5.47% | P/B Ratio | 5.36 |
| Debt to Equity | 0.16 | Current Ratio | 1.76 |
| Promoter Holding (%) | 19.13% | FII Holding (%) | 12.45% |
| Operating Profit Margin | 14.37% | Net Profit Margin | 9.09% |
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Ion Exchange (India)
Ion Exchange (India) is a leader in the Indian water treatment industry and offers total water management solutions for industry, homes, and communities. The company is engaged in manufacturing resins, speciality chemicals for water and waste water treatment as well as non-water applications.
The company’s activities are engineering (60%), chemical (29%), and consumer product segments (11%). It operates 19 plates, including 17 national and 2 international. It has over 50 patents to its credit and more than 100 products commercialized. The company orders are from Saudi Arabia and the UAE for water plants.
Ion Exchange (India) Limited’s revenue has decreased from 1990 Cr. to 2348 Cr. in FY24 and is down by 18.84%. The net profit is to be 195 crore in FY24. Revenue and net profit grew at a CAGR of 12.23% and 20.01%, respectively, over the last 4 years. The company is estimating an improvement in margins and profitability in the upcoming years.
Some of the key financial metrics of Ion Exchange (India) Limited are given below.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹653.65 | Market Cap (Cr.) | ₹9,579.53 |
| EPS (TTM) | ₹13.37 | Stock P/E (TTM) | 48.85% |
| ROE (TTM) | 19.26% | ROCE (TTM) | 23.70% |
| ROA (TTM) | 7.98% | P/B Ratio | 9.42 |
| Debt to Equity | 0.15 | Current Ratio | 1.59 |
| Promoter Holding (%) | 26.38% | FII Holding (%) | 5.63% |
| Operating Profit Margin | 11.90% | Net Profit Margin | 8.25% |
EMS Limited
EMS Limited was incorporated in the year 1998. It provides turnkey services in water and wastewater collection, treatment, and disposal. EMS is a primary focus on the sewerage network including designing and laying sewerage pipelines, which is 60-70% and the remaining 30-40% of work is in the water treatment plant segment, including projects for water supply systems and wastewater treatment schemes.
EMS Limited’s revenue has decreased from 538 Cr. to 793 Cr. in FY24 and is down by 47.40%. The net profit is to be 153 crore in FY24. Revenue and net profit grew at a CAGR of 12.23% and 20.01%, respectively, over the last 4 years.
Some of the key financial metrics of EMS Limited are given below.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹683.95 | Market Cap (Cr.) | ₹3,800.81 |
| EPS (TTM) | ₹27.00 | Stock P/E (TTM) | 25.35% |
| ROE (TTM) | 19.11% | ROCE (TTM) | 25.83% |
| ROA (TTM) | 17.54% | P/B Ratio | 4.84 |
| Debt to Equity | 0 | Current Ratio | 8.83 |
| Promoter Holding (%) | 26.38% | FII Holding (%) | 5.63% |
| Operating Profit Margin | 28.46% | Net Profit Margin | 20.84% |
Other Stocks in Waste Management in India
| Stocks | CMP | Market Cap (in Cr.) | PE (TTM) |
|---|---|---|---|
| Urban Enviro Waste Management Ltd. | 367.2 | 159 | 22.54 |
| Baheti Recycling Industries Ltd. | 271 | 280.99 | 39.05 |
| Nupur Recyclers Ltd. | 94.47 | 648.43 | 90.84 |
| Organic Recycling Systems Ltd. | 291.15 | 220.47 | 28.38 |
| GEM Enviro Management Ltd. | 220.85 | 474.35 | 47.38 |
| EP Biocomposites Ltd. | 159.45 | 26.81 | 23.31 |
Conclusion
We are at the end of the article, which is the conclusion of the waste management future look in India. The future of waste management looks promising, with innovative technologies shaping the industry. This industry is relatively mature, and private equity interest remains elevated due to the sheer size of the market and diverse investment angles.
Investing in smart solutions for solid waste management can lead to significant cost reductions in operational expenses and contribute to environmental sustainability. This is the time to invest in this dynamic field, as it aligns with global sustainability goals and offers long-term benefits. What do you think about the future waste management industry in India? Let us know your comments below.
Witten By Nikhil Naik
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