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)
