e wastever final

8/8/2019 E Wastever Final

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E-waste: Opportunity or Burden?

India is expected to have an 11% share in the global consumer electronic market by 2015. By 2012, India is

expected to have 600 mn mobile subscribers, 60 mn PCs and 143 mn TVs.

Exhibit 1:

Source : Tata Strategic Analysis, IDC, Crisil, KPMG

The average lifespan of most electronic gadgets has been constantly reducing. This fast obsolescence of electronic

gadgets results in generation of e-waste. E-waste is a term used to categorize electronic items which have reached

end-of-life for their current users. Such items often contain materials that have economic value but can pose

environmental risks if they are land filled or incinerated.

Substances in electronic components

Valuable Hazardous

Gold Brominated Flame Retardants (BFR)

Silver Lead, Cadmium

Platinum Mercury

Aluminum Phthalate Plasticize

In 2012, 7.1 mn computers, 16 mn TV sets and ~190 mn mobile handsets are expected to be a part of the e-waste

pool in India. This would translate into 1 mn tons of e-waste in 2012.

Exhibit 2:

India is expected to be one of the largest consumer electronic markets in the world. By 2012,

India is expected to have 600 mn mobile subscribers, 60 mn PCs and 143 mn TVs. This will lead

to significant amount of e-waste. With regulatory intervention likely, there is opportunity for theemergence and growth of organized players in e-waste management as well as major

compliance commitments for various industry players says K.Raman of Tata Strategic

Management Group.

Mobile Subscribers (Mn)

103

261450

600

2006 2008 2010F 2012F

Televisions (Mn)

105

119134 143

2006 2008 2010F 2012F

PCs (Mn)

2132

44

60

2006 2008 2010F 2012F

Potential Desktop units e-

waste (Mn)

3.1

7.1

2007 2012

18%p.a.

Potential TV units e-waste

(Mn)

13

16

2007 2012F

6% p.a

Potential Mobile e -waste (Mn)

45

188

2007 2012

33% p.a.



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Global Scenario:

Advanced countries like USA, UK, France & Germany generate 1.5 to 3 million tons of e-waste annually and are

among the largest generators of e-waste. But these countries also have standardized e-waste management

processes in place.

Proper e-waste management, from efficient sourcing and collection right upto extraction and disposal of material,has ensured that this huge pile of junk turns into a lucrative business opportunity.

E-Waste Manangement

Exhibit 3:

Some of the policies in place globally for effectively managing e-waste are summarized in Exhibit 4

Exhibit 4:

Source : Business Press, UNEP, Central Pollution Control Board

A number of major companies around the world have evolved to cash on the potential of e-waste.

Australia based Sims e-Recycling is a part of the recycling solution of the USD 2,900 Mn

(FY06) Sims group which is a leading end to end recycler having 120 sites across 4 continents

and has presence in metal, plastic, glass and e-waste recycling. E-waste recycling accounts for

USD 130 Mn in revenues.

The USD 15 Mn Centillion Environmental & Recycling, a Singapore based e-waste recycler,

has extensive operations in Singapore, China, UK & Malaysia.

Some of the other prominent companies in e-waste recycling include TES-AMM, Cimelia and Citiraya

among others.

• Commonly Known as Extended Producer

Responsibility (EPR)• Manufacturers financially responsible beyond

point of sale

• Manufacturers required to take back e-waste &

recycle them upto a defined percentage.

• The funding model for this activity varies fromcompany to company

• End consumer taxed a recycling fee on the

purchased product

• This Tax / Annual recycling fee (ARF) is used tofund the ewaste collection & recycling activity

• Government is responsible to administer and

collect e-waste

Producer Responsibility

• Pressure on manufacturers to design toxic free

electronics requiring lesser recycling effort• No incentive for manufacturer to create cleaner

designs• E-waste not likely to reduce as manufacturers do

not have any liability

European Union, Japan, South Korea, Taiwan Switzerland, California (USA)

Model

Government Responsibility

Current

examples

Likely

Implication

Re ulator Models in Place for

Aggregation Sourcing of E-

waste

Segregation &

Dismantling

Recycling Hazardous

material disposal

• Collection of E-

waste form

Business users

and Residents

• Sorting material

into 3 parts for:

- Reselling

- Repairing &Reselling

- Recycling

• Dismantling

into individual

components

like PCB,Monitors &

Hard Disks

• Breaking

down CRTs

for glass

extraction

• Valuable

material

recovery• Extracting

metals

• Disposing

hazardous

material



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The lessons we can draw from these policies are:

Regulation enables e-waste management procedures and the emergence of organized players

There is a cost to the consumer or producer to enable efficient e-waste management procedures

Exhibit 5:

Domestic Scenario:

In India, while recycling of goods is prevalent, it is primarily undertaken by unorganized players / family

workshops who collect e-waste through bicycle bound scrap collectors. These players utilize the cheapest way to

recycle and do not follow safe and standard material disposal procedures. The few organized players in this market

include InfoTrek, Trishyiraya, e-Parisara, Ultrust Solutions and Ramky. They have large overhead costs which

make it difficult for them to compete with the unorganized players.

Implication:

With India expected to be one of the largest consumer electronic markets in the world, the high levels of e-waste

should attract regulatory attention and one can expect legislation for e-waste very soon. The Central Pollution

Control Board has already come out with broad guidelines on e-waste handling and a formal legislation cannot be

far ahead. Going by recent trends, it is likely that the e-waste regulations on the lines of Extended Producer

Responsibility model as in the EU will be implemented in India. E-waste recycling revenues have a potential to

touch INR 1,520 Cr annually by 2012.

Exhibit 6:

Source : Tata Strategic Analysis

Manufacturer responses to e-waste legislation: International Examples

Electronic Manufacturers Recycling Company: A JV formed by Panasonic, Sharp and Toshiba to

manage e-waste. The JV aims to provide cost effective collection and recycling services to enable

manufacturers meet the e-waste legislative requirements

Nokia, in Europe, has ensured accessibility of take back channels through take back bins and

collection points. The old devices dropped off by consumers are sent to the nearest Nokia

approved recycling companies

E-Waste Recycling Revenue Potential (INR Cr)

160470

380

660190

390

2007 2012F

Co mp ut er s T V Ot h er s

1520

730

CAGR 16%



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When manufacturers are expected to play a role in e-waste management there are challenges they would need to

address like

• Efficient collection and management of e-waste

• Develop approved recyclers who conform with regulatory requirements for labour and hazardous

substance handling

• Manage the additional costs expected to arise due to compliance efforts without impactingcompetitiveness

As manufacturers go about addressing these challenges we could see the emergence of stronger organized

companies in e-waste management. Companies looking to leverage the opportunity early would need to focus on

building the right capabilities related to collection, aggregation and re-cycling of e-waste that would be needed for

providing solutions to manufacturers and hence build scale in e-waste management.

Effective e-waste management as we have seen internationally will need manufacturers to develop newcapabilities and alliances. This can also be a powerful tool to demonstrate one’s responsibility to the environment.

It would be important for organizations to have a well directed strategy for e-waste management.

Manufacturers and e-waste management companies who are ready will find e-waste as an opportunity for further

growth.

Ⓒ Tata Strategic Management Group. No part of it may be circulated or reproduced for distribution without prior

written approval from Tata Strategic Management Group.

e wastever final

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