Nippon Magnetic buys 4.8% stake in Mumbai-based Ecoreco

Japan's metal pre-processor company Nippon Magnetic Dressing Co. Ltd (NMD) has invested Rs 3.2 crore ($0.58 million) in e-waste recycling company (Ecoreco) to pick up a 4.8 per cent stake.

As per the deal, Ecoreco has issued 8 lakh shares to Nippon Magnetic at Rs 40 each in a preferential allotment. Through this investment Ecoreco aims to tap Japan's electronic and electrical equipment producers in India to provide them recycling services.

“This is the first strategic investment in any e-waste recycling facility in the country (financial investments are already in place with another recycler). It signifies that the e-waste recycling market is now poised to take off in India,” said BK Soni, chairman, Ecoreco Recycling Ltd.

Shares of Ecoreco closed at Rs 37.40 a unit on the BSE, down 0.13 per cent.

Started in September2007, Ecoreco is engaged in e-waste recycling and provides services including equipment refurbishment and resale, de-manufacturing and disassembly, harvesting valuable components, hazardous and base met, a company listed on the Bombay Stock Exchange since 1995 and B K Soni, the first generation entrepreneur and main promoter of Infotrek Syscom Ltd.

Brand Capital invested $ 0.77 million in the Ecoreco in March 2011 and $ 1.3 million in 2008.

Founded in 1949, Nippon Magnetic Dressing Co. Ltd is engaged in the business of recycling steelmaking slag and other by-products out of steelmaking fields. Its services include special steel melting, recovery of copper, garbage processing etc.

The waste management space is seeing increasing interest from the investment fraternity.

Noida-based Attero Recycling, an electronic waste recycling company, recently announced it is raising a total of $8.3 million in funding from International Finance Corporation, Granite Hill and existing investors.

(Edited by Prem Udayabhanu)

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