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Industry of the Month                                                        “E-waste Industry in                         ...
Biz India News                                                                       Headlines•   To develop training and ...
Biz Policy Updates                                                                 Legal HeadlinesA series of reforms have...
Biz India News                                                                   Legal Headlines•   The Ministry of Commer...
E-waste Industry in IndiaThis era is a witness to the most technologically advanced generationswhich the earth has ever bo...
E-waste Industry in Indiathem, the organizations have a need to work hard to reduce and limit theharm they might expose th...
E-waste Industry in IndiaProspects of Advancement: Opportunities that lie aheadSince the technologies and the processes wi...
E-waste Industry in India    enquiries regarding disposal of e-waste. Wipro takes complete physical    and financial respo...
Business Idea of the Month    E-waste Collection Center    One would think that when it comes to e-waste, hardly any    bu...
StartBizIndia Discussion PlatformMr. Bagchi while recently travelling to Bangalore met a person whowas associated with a c...
Upcoming Business Summit   IFSEC India Exhibition, 2012 (International Fire And Security    Exhibition)    Organized by U...
Biz India News                   Nitesh Latwal                                           Visit us at            E: nitesh@...
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Business Setup Article : Indian eWaste Industry: eBizwire October 2012

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E-waste Industry in India: This era is a witness to the most technologically advanced generations which the earth has ever borne: Generation X, the ones that saw light of the day in 1960s and 70s; Generation Y which was born in the 80s and the 90s; and finally the Generation Z that is right now enrolled in schools and colleges.

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Transcript of "Business Setup Article : Indian eWaste Industry: eBizwire October 2012"

  1. 1. Industry of the Month “E-waste Industry in India” eBizWire Vol. I Issue. IX, October 2012 InsightBiz India News 2Biz Policy Updates 3The Indian E-waste Industry 5Business Idea of the Month 9StartBizIndia Discussion Platform 10Upcoming Business Summit 11Contact us 12 For more info on Business setup visit www.startbizindia.in Page |1 For Business setup queries email at nitesh@indiacp.com or call at 011 40622249
  2. 2. Biz India News Headlines• To develop training and technical cooperation in the civil aviation sector, India & New Zealand sign a the New Zealand and Indian Governments signed an Arrangement of document for cooperation in Civil Cooperation on Civil Aviation. Not only a joint committee will be formed Aviation to develop a plan of cooperation, it has been decided that the cooperation will include exchange of experts, acceptance of licenses, aeronautical products and aviation services.• Mercedes has launched its SUV ML 250 CDI which has been locally Mercedes launches first Indian made assembled in India at its Chakan plant, near Pune. India is the only SUV country apart from USA where this car is being produced. Production of other models ML 350 CDI and those belonging to the GL class will soon follow. Priced at Rs 46.5 Lakh, the car’s power train and axles are being sourced locally.• Blackstone Capital Partners (Singapore) has acquired a 12.5% stake in Blackstone puts USD 100 million in International Tractor Limited (ITL) in order to aid the acquisition plans of International Tractor Limited ITL for at least two companies in Europe. In India the Company holds 10% of the market share and is dominated by other players like Mahindra and Mahindra and Escorts.• Staying true to its commitment to provide world class banking facilities, HDFC reaches its NRI customers in HDFC has opened its second representative office in UAE in Abu Abu Dhabi by opening a Dhabi. The bank has its other office situated in Dubai. The office will be representative office providing various services to the NRIs like facilitation of opening NRE accounts in India, remittance services, fixed deposits in India.• India and Austria signed a MoU on technology cooperation in shipping India and Austria sign Memorandum and ports infrastructure. Newer technologies used in Austria for Internal of Understanding for tech Ship and Port Security, use of radio frequency identification in logistics, cooperation transport planning, optical character recognition will be used in the Indian shipping sector. Apart from this, various other technologies will be developed.• As per the Grand Thornton Global Dynamism Index, India sits at the India ranked the 5th best in the World’s 5th position for dynamic growing businesses. The index chose 5 World for growing businesses broad areas: Business operating environment, Science & technology, Labour & Human Capital, Economics & Growth and the Financing environment. Argentina, China, Uruguay and Chile were in the top 4. For more info on Business setup visit www.startbizindia.in Page |2 For Business setup queries email at nitesh@indiacp.com or call at 011 40622249
  3. 3. Biz Policy Updates Legal HeadlinesA series of reforms have been initiated by the Indian Government in theForeign Direct Investment Policy. The reforms have been brought aboutmajorly through reviewing of the existing policy and are directed towardsits liberalization.• The Government reviewed its FDI policy concerning the single brand FDI conditions for investment in product retailing and brought about a few changes in the terms and Single Brand Product Retail Trading conditions while keeping some of them unchanged. It notified that it Reviewed shall no more be necessary for the investor and the owner of the brand to be the same person. However, now only one non-resident entity shall be allowed to be an investor. Also, wherever an FDI proposal will involve an investment of more than 51% by the foreign investor, at least 30% of the value of goods shall be sourced from India, preferably from MSMEs, village & cottage industries, artisans and craftsmen. It has also been clarified that retail trading by mode of e-commerce shall not be allowed• After a lot of deliberations, the much awaited decision has been made FDI up to 51% permitted in Multi Brand to allow FDI in Multi-Brand Retailing. There are various restrictions Product Retail Trading which the government has imposed which are only of a regulatory nature. Where the government has fixed the minimum FDI to be at least US$ 100 million, it has also mandated to use within 3 years at least 50% of the total investment for capital expenditure on processing, manufacturing, distribution, design, quality control, logistics, warehousing and other such “back end infrastructure” facilities. The government has also set the eligibility criteria for cities and states on the basis of their population to house the retail outlets. However, the State and the Union Territory Governments shall have the first call in taking up the implementation of policy• Until now, foreign airlines were allowed to invest only in cargo airlines, Foreign Airlines permitted to invest up helicopters and seaplanes. The government has moved a step ahead to 49% in the Indian Civil Aviation and has allowed the foreign airline companies to invest in Indian Companies companies operating in the Civil Aviation Sector to the extent of 49%. The investments will have to be made through the Government approval route and will have to comply with relevant regulations of SEBI such as the Issue of Capital and Disclosure Requirements Regulations (ICDR) and the Substantial Acquisition of Shares and Takeovers Regulations (SAST). The policy however, will not be applicable to M/S Air India Limited For more info on Business setup visit www.startbizindia.in Page |3 For Business setup queries email at nitesh@indiacp.com or call at 011 40622249
  4. 4. Biz India News Legal Headlines• The Ministry of Commerce & Industry revised the foreign investment Liberalization of the policy on Foreign limits in companies engaged in this sector. For companies providing Investment in companies operating in services regarding Teleports, DTH (Direct to Home); cable networks the Information and Broadcasting operating at all levels, network up-gradation and Mobile TV, FDI up to Sector 49% shall be allowed through the automatic route. For any investment beyond that and up to 74%, Government’s approval will be required.• FDI up to 49% will now be allowed in Power Exchanges under the Central Electricity Regulatory Commission (Power Market) FDI now permitted in Power Exchanges Regulations, 2010 after the required Government approval. In the given 49% the Government has given a bifurcation between an FII limit of 26% which shall be permitted through the automatic route and an FDI limit of 23% permitted through the Government approval.• Until now, 100% foreign owned NBFCs having a minimum Relaxation in Capitalization norms for capitalization of US$50million were allowed to set up subsidiaries for subsidiaries of Foreign Owned NBFCs specific NBFC activities without bringing in additional capital and restriction on the number of operating subsidiaries. On the October 3rd, 2012 the Government notified that now those Indian companies also which are registered as NBFCs but are not 100% foreign shall be allowed the same privileges if they have at least 75% foreign investment and a minimum capitalization of US$ 50 million. For more info on Business setup visit www.startbizindia.in Page |4 For Business setup queries email at nitesh@indiacp.com or call at 011 40622249
  5. 5. E-waste Industry in IndiaThis era is a witness to the most technologically advanced generationswhich the earth has ever borne: Generation X, the ones that saw light ofthe day in 1960s and 70s; Generation Y which was born in the 80s and the90s; and finally the Generation Z that is right now enrolled in schools andcolleges. The audio cassettes, calculators, floppy disks, walkmans of the60s and 70s gave way to Windows and Apple Macintosh, cell phones,Pentium processors and Internet in the 80s! All these have eventuallygiven way to things like gaming consoles, e-book readers and DVDplayers, things which we cannot imagine our lives without.But the rate at which the technology advances and the rate at which theseproducts are gaining popularity and demand, it’s very easy to switch overto the next version that’s launched in the market. What do we do aboutwhat that’s left behind? Do we know that all that just piles up together assomething that our planet cannot process on its own?The Ministry of Environment and Forests has defined E-Waste as“waste electrical and electronic equipment, whole or in part or rejects fromtheir manufacturing and repair process, which are intended to bediscarded”. It has also defined the Electrical and electronic equipmentas “equipment which is dependent on electrical currents or electro-magnetic fields to be fully functional”.Our lives, if you carefully notice are filled with electronic items. Let’s startwith teenagers. Whatever activities that will come to your mind as soon asyou say ‘teenager’ can be directly or indirectly related to technology. Didyou just say late nights? What’s the reason? Late night gossips over thePHONE, internet surfing on the COMPUTERS, listening to music on theMP3 PLAYERS, playing video games using the latest GAMINGCONSOLES or even reading our favorite book on our TABLETS or E-BOOK READERS that we just love to show off. If you move over to otherpeople in the family you’ll find our lives revolve around technology. Foodprocessors, washing machines, televisions, vacuum cleaners, fans, lights,invertors! The list is endless!We are very much aware that the bodies of all of these products are madeof plastic or other material that is non biodegradable. Not only the useditems cause unnecessary clutter, they are harmful for the environment ifdisposed off in an inappropriate way. And this very fact forms the premiseof a thriving industry!Why is recycling required in the first place?Recycling as an activity is not just a statutory requirement arising fromrules and regulations as made by the Government, it is even necessary forthe businesses from their image point of view. Big organizations producingelectronic products have a brand to maintain. Going by the socialresponsibility they have towards the people and the environment around For more info on Business setup visit www.startbizindia.in Page |5 For Business setup queries email at nitesh@indiacp.com or call at 011 40622249
  6. 6. E-waste Industry in Indiathem, the organizations have a need to work hard to reduce and limit theharm they might expose that environment to. Just like the factories have totake care of the chemical and areal effluents, they have to take care of thescrap that they produce or the consumers produce as an end result of theuse of the product manufactured by their organization.Apart from that, the need for recycling is pushed by monetaryconsiderations. Some materials may be very costly to produce from thescratch. Recycling can enable the businesses to recycle a particularmaterial and use that processed material as an input to their own product’smanufacture. For example, a handicrafts entity may want to makenotebooks and diaries made up of rugged looking paper. That entityinstead of producing paper from scratch can recycle newspapers andproduce hand-made paper instead and also reduce the cost. E-WASTE INDUSTRY IN INDIAThe Unorganized sector in the Industry UNORGANIZED:The E-waste industry by and large operates in an unorganized format as of Junk dealing set-ups whonow. Though the industry is lucrative for small dwellers that operate, it is a dismantle e-waste tothreat to the country’s environment as well. Since the legal regulations are extract metals and burna comparatively newer advancement, most of the e-waste in India is the rest of the material, unaware of the toxinsdismantled and recycled by hand using the limited technology that isavailable.The industry is however moving towards corporatization with bigger ORGANIZED:companies who see a profit here and the E-waste (Management and Emerging entrepreneursHandling) Rules, 2011 which came into effect on 1st May 2012, also and existing companiesfavours these companies due to the access to better technologies that who have a more formalthese companies are capable of. system in place for dealing with e-wasteAccording to Centre for Science and environment (CSE), more than90% of the e-waste generated lands up with the unorganized market thatprocesses most of it. ASSOCHAM says that only 4.5% of India’s e-wasteis recycled. To add to the agony, e-waste from developed countries likeUSA and Japan is also brought into India in the name of charity. E-waste (Management and Handling) Rules, 2011 in effect since May 1, 2012The Downside of the Unorganized Sector Less than 5% of the e-waste producedVarious e-waste centers exist majorly in Delhi, Meerut, Ferozabad, by India is recycledChennai, Bangalore and Mumbai. These centers have a typical scrap yardset-up where the workers are not amply protected. The waste is discardedin the stereotypical burn-the-waste method which exposes them to toxicgases that they themselves aren’t aware of. What however they dosucceed in doing is extracting metals like aluminium, platinum, gold,cadmium, mercury and lead while they dismantle it. For more info on Business setup visit www.startbizindia.in Page |6 For Business setup queries email at nitesh@indiacp.com or call at 011 40622249
  7. 7. E-waste Industry in IndiaProspects of Advancement: Opportunities that lie aheadSince the technologies and the processes with the low-scale e-wasterecycling units are very limited, bigger entities are slowly realizing thepotential that this industry has to offer. Due to this, the industry is slowlymoving in the direction of becoming organized.The new E-waste (Management and Handling) Rules, 2011 have a lot ofprovisions that are favourable to more formal set ups than the unorganizedand informal recyclers. More players will enter slowly but for those who do; E-wastethe first mover advantage will definitely be accrued. Computer EquipmentAccording to ASSOCHAM, India generates over 4.4 lakh tones of e- Telecom Equipmentwaste annually and this figure grows at about 20% compounded annually!So, there is a lot of waste to be taken care of. It is mostly the computer Electricalsequipment that causes a huge increase in the e-waste generated with Medical Equipmentalmost 68% waste coming from it. The Telecom equipments account for Household e-waste12% of the whole Indian e-waste. With 8% of the waste coming fromelectricals, medical equipments are only 7% of the total waste and rest ofthe 5% is common household equipments. 5%How the bigger set ups are going to help is that with better facilities, these 7%entities will be able to reduce the chunk of e-waste that eventually goes 8%into the landfills. Most of the waste can be recycled in redeployed andhence reused. Proper dismantling and recycling processes for the pile thatcannot be restored any further will ensure their proper treatment, removal 12%and treatment of toxins in the safest way possible and disposal of only thatportion that cannot be further treated. 68%Companies playing role in lowering the impact caused by theirproducts: -Based on data by ASSOCHAMSome big companies born in India are upfront with their e-waste initiativesrunning successfully for a few years now. Such a help from the producersthemselves has not only lead to customer satisfaction butensures that the used products are properly disposed off.• HCL: The E-waste policy of HCL does not begin at the end of a product’s life at consumer’s side but from the very beginning of the manufacturing process. HCL designs its products in a way that they can easily be dismantled later on. The company has even enabled the customers to lodge an e-waste collection request online and makes sure that the products are shipped with details about its collection centers. [Source: http://www.hclinfosystems.in/e-waste-management-initiative.htm]• Wipro: Wipro is another Indian company that has a successful e-waste management programme. It has a chain of 19 collection centers throughout the country and even has a pick-up facility for its customers. It has a green helpline through which customers can make For more info on Business setup visit www.startbizindia.in Page |7 For Business setup queries email at nitesh@indiacp.com or call at 011 40622249
  8. 8. E-waste Industry in India enquiries regarding disposal of e-waste. Wipro takes complete physical and financial responsibility regarding recycling of all products under its brand [Source: http://www.wiprogreentech.com/ewaste_management.html]The E-Waste (Management and Handling) Rules, 2011The rules have been notified to ensure that the impact on the environmentcaused by the e-waste is controlled, in the first instance and thenminimized.Applicability: The rules have been made applicable to every producer,consumer or bulk consumer, collection centers, dismantlers and recyclers.Though the responsibility of a consumer in the given rules has been hopedto be fulfilled with the consumer’s conscience, but for a producer, anextended responsibility of the used products of its company has beenprescribed.Non-Applicability: The rules are not applicable to MSMEs, batteries andradioactive wastesSome of the salient features of the rules are: 1. Defined responsibilities of the producer, the collection centers, consumer, dismantler and recycler. 2. Separate Authorization and Registration. 3. Requirement of maintaining a record of all the e-waste handled. 4. Requirement of Annual Return regarding the e-waste collected, handled or recycled as the case may be. 5. Storage of untreated e-waste allowed for a maximum of 180 days. 6. A mandatory No-objection certificate from the State Pollution Control Board in case of Inter-state e-waste transport.The recycling facilities in India are still at a nascent stage but given thequantum of e-waste produced every year, it is not hidden that there’s ahuge need which is currently not appropriately addressed. With not a lot ofcompanies operating in this sector, one doesn’t come across knownnames. The industry is already a home to few start ups and similarly moreentrepreneurs are expected to pitch in. Given the scope of the industryowing to environmental needs, it is hoped that this sector will see a lot ofgrowth. Who knows? In times to come the sector might flourish enough toinvite foreign investment and collaborations! For more info on Business setup visit www.startbizindia.in Page |8 For Business setup queries email at nitesh@indiacp.com or call at 011 40622249
  9. 9. Business Idea of the Month E-waste Collection Center One would think that when it comes to e-waste, hardly any business can be set up unless one comes along with a very charitable thinking or is very attached to the Mother Nature. In fact there are so many people who think that any activity that has to do with environment is the forte of our Government. The E-waste (Management and Handling) Rules, 2011 talk about the “extended responsibility” of the producer. They point to the company’s responsibility set up a system by which it can collect back the used electronic products when the consumer is ready to dispose them. Big companies like Dell, HCL and Nokia have a take back policy through which they collect tones of waste products every year so that they can be acted upon accordingly. However, there are other companies who are struggling to come up with such policies or for whom such policies are completely nonexistent. So pull up your socks and get thinking! Why not help the companies (and in process the Government, common people and Environment also) by setting up your own collection centre so that you can act as an intermediary between the organization and its consumers? You can charge a commission based on how many consumers you cater to for a company. But since the said rules are not applicable to MSMEs, you will only be operating under the umbrella brand of a bigger company. Since Government is itself calling for entrepreneurs to set up such facilities, the electronic companies will be on a look out for volunteer start ups like you! You will need a storage space of your own and of course have to approach the companies you target so that they both parties settle into a contract. After that you will have to advertise accordingly so that consumers know that they now have a collection centre near them. You can even provide a pick-up facility for far-away customers depending on how much it costs you. This venture is bound to work because the people are ever ready to dispose the junk lying in their homes, and given that you give them the ease of location, they will be more than happy to come to you. Voila! You have a new business venture for yourself. For more info on Business setup visit www.startbizindia.in Page |9 For Business setup queries email at nitesh@indiacp.com or call at 011 40622249
  10. 10. StartBizIndia Discussion PlatformMr. Bagchi while recently travelling to Bangalore met a person whowas associated with a community set-up that recycled commonhousehold non-biodegradable waste. The conversation with thatperson was enough to light a spark in Mr. Bagchi’s mind who for along time wanted to do something about the harm being done to theenvironment. He thought of setting a large scale recycling unitespecially focusing on e-waste which could cater to the needs of notjust one community but in fact a few towns and cities. How should hego ahead with the setting up of that facility?ANSWER: The first and foremost which Mr. Bagchi needs to keep in mind dfcais the legal requirements which have to be taken care of before setting upof any business. He will have to undertake the following general steps: 1. Deciding the name of the business 2. Choosing the business structure (There are various options like Sole proprietorship, Partnership, Limited Liability Partnership, Company) 3. Registration with the Income Tax authority (i.e. obtaining PAN) 4. Opening Bank Account.But, not only will Mr. Bagchi have to take care of all business set upformalities depending upon the structure he chooses, he will also have totake care of regulations formulated specifically for proper handling of E-waste by the Ministry of Environment and Forests.Before planning to set up a recycling unit, the e-waste (Management andHandling) rules, 2011 require you to seek an authorization and then aregistration.Authorization: Authorization is granted only when the applicant hasappropriate facilities, technical capabilities and proper equipment to handlee-waste safely. This authorization shall be obtained from the StatePollution Control Board (SPCB) or the Pollution Control Committee inUnion Territories.Registration: For registration, an authorized recycler needs to have theconsent to establish granted by the SPCB and registration with the DistrictIndustries Centre (State bodies under Ministry of Micro, Small and MediumEnterprises set up to facility the business development) or a similarGovernment body before going ahead with the application.The registration will then be granted with 90 days and will be valid for twoyears after which Mr. Bagchi can apply for its renewal. Apart from this,once the recycling business is put into action, Mr. Bagchi will have to be inthorough compliance of not only the above mentioned rules but also theGuidelines for Environmentally Sound Management of E-waste, 2008 For more info on Business setup visit www.startbizindia.in P a g e | 10 For Business setup queries email at nitesh@indiacp.com or call at 011 40622249
  11. 11. Upcoming Business Summit IFSEC India Exhibition, 2012 (International Fire And Security Exhibition) Organized by UBM India Pvt. Ltd, it will be the largest security exhibition cum trade show of India spread over a course of 3 days. An intense networking session, the event will see national and international leaders in this arena. Besides presenting an opportunity to present security products and equipments for commercial security, the exhibit will also highlight security services and technologies for the government security. Date: November 1-3, 2012 Venue: India Expo Centre and Mart, Greater Noida, Uttar Pradesh 6th Renewable Energy India 2012 Expo This exposition will be held to serve the Indian renewable energy market. It shall focus on improvising and highlighting environment- friendly renewable resources such as solar energy, wind, biomass, bio fuel, small hydro, geothermal and energy efficiency. Date: November 7-9, 2012 Venue: Indian Expo Centre, Greater Noida, NCR of Delhi TIE ISB Connect 2012  IFSEC India Exhibition, 2012 Organized by the TIE, Hyderabad chapter and Wadhwani Centre for Entrepreneurship Development, this event hopes to give a common  Renewable Energy India 2012 platform for networking to the aspiring entrepreneurs, early stage Expo ventures, potential investors and successful entrepreneurs.  TIE ISB Connect 2012 Date: November 22-24, 2012 Venue: ISB Campus, Hyderabad  Frost & Sullivan’s 2012 India Frost & Sullivan’s 2012 India Industrial Technologies Summit Industrial Technologies Summit It’s a summit that will bring together people and discuss the best possible practices through which the end users can utilize latest technologies to employ fewer resources and increase their competitiveness. Date: November 27, 2012 Venue: Mumbai For more info on Business setup visit www.startbizindia.in P a g e | 11 For Business setup queries email at nitesh@indiacp.com or call at 011 40622249
  12. 12. Biz India News Nitesh Latwal Visit us at E: nitesh@indiacp.com D: +91.11.40622249 M: +91 9873521481 A Venture of st D- 38, 1 Floor, South Extension, Part I New Delhi – 110049 Ritika Kharbanda E: ritika@indiacp.com T: +91.11.40622200 F: +91.11.40622201 E: info@startbizindia.com D: +91.11.40622246 M: +91 9899180593Disclaimer:This paper is a copyright of Corporate Professionals (India) Private Limited. The entire content of thispaper have been developed for the new startups. The author and the Company expressly disclaim alland any liability to any person who has read this paper, or otherwise, in respect of anything, and ofconsequences of anything done, or omitted to be done by any such person in reliance upon thecontents of this paper. For more info on Business setup visit www.startbizindia.in P a g e | 12 For Business setup queries email at nitesh@indiacp.com or call at 011 40622249

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