antony waste handling cell ltd share price Management discussions

Global waste management overview

The focus and scope global waste management industry has been growing rapidly in recent years amid increasing concerns about sustainability and the need to manage waste effectively. Additionally, the adoption of new technologies and government regulations aimed at reducing waste generation and adopting sustainable methodologies, continue to be the sectors growth drivers. The global waste management market was estimated to be worth USD 1,060.07 billion in FY 2022 and is expected to reach USD 1,782.5 billion by 2030. It is estimated to grow at a compound annual growth rate (CAGR) of 6.71% from 2022 to 2030¹. The waste management industry undertakes the comprehensive range of tasks and procedures involved in effectively handling waste from its origin to its ultimate disposal. These activities include the collection, transportation, treatment, and final disposal waste, accompanied by diligent monitoring and regulatory oversight throughout the waste management process.

Further, in 2022, the Municipal Solid Waste Management (MSWM) market surpassed USD 117 billion in size and is expected to grow at a compound annual growth rate (CAGR) of over 3.3% from 2023 to 2032. Municipal solid waste refers to the combination of commercial and domestic waste generated within municipal or officially designated areas. It includes solid or semi-solid waste materials, excluding hazardous waste from industrial sources, while including properly treated bio-medical waste. The industrys expansion is driven by a transition from conventional methods of garbage disposal to sustainable and innovative waste management models. There is a growing demand for clean energy to mitigate the impact of climate change. Consequently, waste- to-energy plants have gained prominence, where municipal solid waste (MSW) is incinerated to produce steam, which in turn drives generator turbines to generate electricity. This utilisation of waste as a renewable energy source contributes to the industrys growth and sustainability

Municipal solid waste (MSW) is a heterogeneous blend of waste from the residential, commercial, and industrial sectors. Residential and commercial MSW usually comprises kitchen or organic waste, clothing, disposable tableware, yard waste, cans, office disposable tables, paper and boxes, whereas institutional and industrial MSW consists of restaurant waste, paper, classroom waste, wood pallets, plastics, corrugated boxes and office papers. Although the composition of MSW can vary greatly, it is widely acknowledged that organic materials make up the majority of MSW. Municipal solid waste management

is a major environmental concern worldwide because the increase in garbage has compelled various nations to alter their waste management procedures. In Developed Economies (DE), incineration, resource recovery and land filling are the three primary methods for managing MSW. In developing economies, land filling is the primary approach. The hunt for alternate disposal methods has also been prompted by land scarcity and concerns about leachate (leading to groundwater and soil contamination) and greenhouse gas (GHG) emissions.

^{1https://www.precedenceresearch.com/waste-management-market
^{2https://www.gminsights.com/industry-analysis/municipal-solid-waste-management-market

Circular economy in India

The country generates substantial amounts of waste across various sectors such as food,
agriculture, mobility, metals, construction, and textiles. However, to achieve net-zero
carbon emissions by 2070, India has taken proactive measures to transition from its
traditional linear consumption model of take-make-waste towards a circular economy. This
shift offers a holistic approach to resource management and sustainable development,
aiming to optimise resource utilisation, minimise waste, boost the local economy, foster
employment opportunities, and reduce reliance on imported raw materials.

India, as a rapidly emerging economy, is consistently enhancing its ecological efforts.
The country has witnessed an expansion in forest cover and a rapid increase in the area of
wetlands. The country embraces progressive ideologies and approaches, advancing with new
perspectives.

The Government of India is prioritising green growth and the generation of green jobs,
leading to the implementation of several initiatives. Regulatory policies, such as the
Battery Waste Management Rules, Plastic Waste Management (Amendment) Rules, and e-Waste
Management Rules 2022, have been introduced to establish standards for waste production
and disposal. These policies impose responsibilities on manufacturers, producers,
importers, and consumers. Additionally, the Government has mandated companies to acquire
Extended Producer Responsibility (EPR) certificates, facilitating transactions among
stakeholders in alignment with circular economy principles.

India processes 75% of its waste.

The Government has placed significant emphasis on its dedication to Mission Circular
Economy in efficiently managing a wide range of waste streams. To facilitate this
objective, NITI Aayog has established 11 committees with the responsibility of developing
action plans for different waste categories, aligning with the principles of the circular
economy.

In addition to that, numerous initiatives and measures were undertaken to address
climate change and mitigate the increase in temperature, with a strong focus on
environmental conservation. In 2019, the Union Ministry of Environment, Forests, and
Climate Change launched the National Clean Air Programme (NCAP) with the objective of
reducing particulate matter concentrations, specifically PM2.5 and PM10, in the
atmosphere. Further, the Government has made a commitment to source 50% of its energy from
renewable resources and aims to reduce total projected carbon emissions by one billion
tonnes by the year 2030.³}

Circular economy

Sustainable production

This entails companies embracing eco-friendly approaches, including the utilisation of
renewable resources, the mitigation of emissions and waste, and the implementation of
energy- efficient techniques.

Designed for longevity

Products should be designed to be durable, reusable, repairable and upgradable. This
extends the life of products and reduces the demand for new items, conserving resources.

Recycling and upcycling

Municipal solid waste (MSW) undergoes segregation, with organic waste undergoing
composting, while plastics and other recyclable materials are reclaimed from inorganic
waste; additionally, refuse-derived fuel (RDF) is produced as a coal substitute.

Waste recovery and management

Indias Swachh Bharat Abhiyan (Clean India Mission) promotes improved waste management
practices. Various private and public organisations are engaged in waste collection,
segregation, recycling and composting.

Overview of Indias waste management industry

The high population density and increased industrial activity in India, producing large
amounts of hazardous and no hazardous wastes, are leading to the growth of the waste
management industry. Indias waste management market is expected to reach approximately
USD 14 billion by 2025.⁴The circular economy is still being explored in India,
and is beginning to gain traction.

Presently, the Urban Local Bodies (ULBs) are obligated to manage all solid waste within
their territorial jurisdiction in accordance with the Municipal Solid Waste Management and
Handling Rules, 2016. ULBs are also mandated to deploy the frameworks requirements and
construct any infrastructure necessary for the collection, storage, segregation,
transportation, processing and disposal of municipal solid wastes.

The MSW generation in the country is greatly influenced by the growing urbanisation.
The generation of garbage in urban India is a product of shifting lifestyle trends, rising
disposable incomes and consumerism. The potential for growth in the waste management
sector is huge, as only 30% of the countrys 75% recyclable waste is now recycled. The
absence of suitable policies for garbage collection, disposal and recycling, as well as
inadequate infrastructure, are just some of the several

issues behind the nations poor waste management. However, by 2050, Indias adoption of
a circular economy will bring USD 624 billion in yearly benefits and result in a 44%
reduction in greenhouse gas emissions⁵.

The market is being driven by an increase in the number of professionals offering
collection and transportation services as well as the development of innovative MSW
management recycling and disposal techniques. Approximately 67% of the municipal solid
waste (MSW) that is collected door to door throughout India is generated in urban areas.
Smart city initiatives, integrated city planning for mainstreaming adaptation and ensuring
energy and resource efficiency, efficient green construction codes and advancements in
innovative solid and liquid waste management, will promote the development of
climate-resilient urban areas.

Waste collection and transportation

Under the Swachh Bharat Mission initiative, primary and secondary solid waste
collection is conducted from all residential, commercial, institutional and other
nonresidential sites. India offers door-to-door waste pickup in many locations, but the
countrys inadequate infrastructure for sorting and disposal renders it inefficient. As
part of the governments initiative to digitise the economy, the Ministry of Environmental
Forest and Climate Change (MoEFCC) launched the Integrated Waste Management System and an
end-to-end app in 2016. The State Pollution Control Board or the Pollution Control
Committee is responsible for supervising the transportation of household hazardous waste
to the hazardous waste disposal site.

Waste processing

Municipal solid waste management (MSWM) and the adoption of processing technologies are
heavily influenced by the quantity and nature of the total waste generated in an ULB.
Biodegradable waste is transported separately to processing facilities such as composting
plants, bio methanation plants or other similar facilities. The Construction and
Demolition Waste Management Regulations, 2016, govern how the construction and demolition
waste is being transported. Recycling is fundamental to reducing waste output, increasing
resource recovery, and lowering the financial and environmental costs associated with
MSWM.

Waste disposal

Waste disposal is a critical component of waste management. People are now urged to
separate their waste into biodegradable and non-biodegradable components for proper
treatment. The absence of landfill liners and leachate systems in nearly 90% of Indian
landfills poses a significant concern for effective waste treatment and environmental
impact. The amount of waste generated exceeds the amount
^{4https://timesofindia.indiatimes.com/blogs/developing-contemporary-india/is-there-a-role-for-informal-waste-pickers-in-the-new-waste-economy/
^{5https://economictimes.indiatimes.com/news/how-to/what-is-circular-economy-and-why-is-it-important-for-india/artideshow/92255753.cms
of waste treated. Around 26% of the solid waste collected is processed. Lack of
segregation primarily causes palletisation and composting plants to operate with
insufficient biodegradable waste. Contemporary, eco-friendly methodologies should not take
precedence over incineration. Landfilling, as a waste disposal method, requires
significant efforts to mitigate its associated risks.

Presence across value chain

Types of waste

Government initiative to promote circular economy.

Staying committed to reducing the pollution caused by discarded single-use plastics, on
August 12, 2021, the Ministry of Environment, Forest and Climate Change, Government of
India, notified the Plastic Waste Management Amendment Regulations, 2021, to lessen
pollution caused by the nations dumped plastic waste. A countrywide prohibition on the
manufacturing, import, stocking, distribution, sale and use of specific single-use plastic
items with high potential for littering and poor utility came into effect on July 1, 2022.

The Government aims to advance the Swachh Bharat Mission to attain garbage-free status
for all cities througRs100% source segregation, door-to-door pickup, scientific management
of all waste fractions and secure disposal in landfills. Additionally, it aims to clean up
all former garbage sites and turn them into green spaces. Currently, 1,14,183 metric
tonnes per day of waste out of the 1,52,245 of waste that is created daily undergoes
processing which is 75% of the total waste generated⁶.

The Government has rolled out several initiatives to help the states with effective
Municipal Solid Waste Management (MSWM) Processing, including-

• The State Governments and Union Territory (UT) administrations present their
City Solid Waste Action Plans (CSWAP), which serve as the foundation for the disbursement
of Central Assistance under the Solid Waste Management (SWM) component.

• The Government has introduced a Garbage Free Star Rating Protocol to assess
cities Municipal Solid Waste Management by third party verification⁷.

These measures will encourage the development of new plastic packaging alternatives, a
circular economy, a drop in the plastic packaging footprint. These initiatives will also
guide the next steps for businesses to take for adopting sustainable plastic packaging.
Following the Swachh Bharat Mission, the waste management infrastructure in the States and
UTs is also being strengthened. A Special Task Force has been formed by all States and UTs
with the goal of forbidding the usage of single-use plastics and efficiently executing the
2016 Plastic Waste Management Regulations. The Ministry of Environment, Forest and Climate
Change has established a National Level Taskforce to make coordinated efforts to eliminate
recognised single-use plastic items and effectively handle plastic waste.
^{6https://pib.gov.in/PressReleaseIframePage.aspx RsPRID=1910103
^{7https://pib.gov.in/PressReleaseIframePage.aspx RsPRID=1910103

Vehicle scrapping industry

The significant expansion of Indias automotive industry has resulted in a growing
volume of end-of-life vehicles (ELVs) necessitating appropriate disposal and recycling
measures. Presently, the market for vehicle scrapping is predominantly controlled by
informal entities, as they offer customers higher residual prices due to minimal or
non-existent adherence to vehicle scrapping regulations.

According to PwC estimates, the vehicle scrapping market is expected to reach H43,000
crore by the year 2030, with Delhi NCR and Mumbai MMR contributing 8% and 3.5% of the
market share, respectively. Typically, a vehicle is utilised by its first user for a
duration of 7-9 years, followed by 7-8 years of use by second or third users, resulting in
an average vehicle lifespan of 15-20 years. Once a vehicle reaches the end of its life
cycle, it is dismantled to recover valuable spare parts and materials, predominantly
metal, which can then be reintroduced into various value chains..

Despite having the largest market share in terms of market size, HMV (Heavy Motor
Vehicle) scrapping is predominantly controlled by Original Equipment Manufacturers (OEMs)
due to the reusability of parts and prevalent buyback offers. Additionally, HMV scrapping
requires specialised tools and a larger spatial footprint, which has discouraged many
competitors from entering this category.

Growth drivers

Vehicle Scrap page Policy

With the implementation of the Vehicle Scrap page Policy in 2021, the vehicle scrapping
industry is undergoing integration into the formal economy. The policy aims to gradually
eliminate old and unfit vehicles. It outlines the implementation of fitness tests for
commercial vehicles starting from April 1, 2023, and mandates fitness tests for all other
classes of commercial vehicles and private vehicles in phases, commencing from June 1,
2024.

The Vehicle Scrapping Policy includes the introduction of incentives to motivate owners
of End-of-life vehicles (ELVs) to scrap their older vehicles. Additionally, Original
Equipment Manufacturers (OEMs) have been advised to offer a 5% discount on the purchase of
a new vehicle in exchange for the certificate of deposit.

The policy promotes the establishment of Authorised Vehicle Scrapping Facilities
(AVSFs), which offer a secure, efficient and ecologically responsible solution for
handling end-of-life vehicles (ELVs). These facilities are mandated to strictly adhere to
applicable laws, regulations and guidelines. The establishment of the AVSF will function
as a centralised entity, facilitating the systematic and regulated vehicle scrapping
procedure. Its objectives include:

• Reducing pollution and curtailing greenhouse gas emissions through the promotion
of proper disposal and recycling of end- of-life vehicles (ELVs) and their constituent
parts.

• Preserving valuable resources by effectively recovering and reutilising
materials derived from discarded vehicles, such as metals, plastics and rubber.

• Fostering local employment opportunities by establishing an industry focused on
vehicle scrapping and recycling activities.

Geography wise Vehicle Scrapping market by size (H in Cr.)

Among the leading geographies in terms of market share, Uttar Pradesh, Rajasthan, and
Punjab have shown progress on the policy front, while Maharashtra and Gujarat have signed
numerous Memorandums of Understanding (MoUs) for the establishment of Registered Vehicle
Scrapping Facilities (RVSFs). Further, Assam, Delhi, and Madhya Pradesh already have
existing scrapping facilities in place.

State
No. of operational RVSFs Description
No. of Vehicles scrapped

Uttar Pradesh
4
6,247

Gujarat
3
1,244

Assam
1
357

Madhya Pradesh
1
220

Haryana
2
134

Chandigarh
1
18

Grand total
12
8,220

Significance of Scrapping Certificate

The issuance of a scrapping certificate guarantees that the vehicle has been disposed
of in an eco friendly manner, thereby potentially generating demand for reputable and
authorised entities in the industry.

Implementation of vehicle owner incentives

The incentives can be linked to tradable scrapping certificates, which would make the
formal disposal of vehicles economically viable for customers.

The informal market, due to its minimal or lack of compliance with vehicle scrapping
regulations, is able to offer customers better residual rates. However, the formal market
has the potential to gain a larger market share if there is a stringent regulatory
framework in place that prioritises environment friendly vehicle disposal and provides
economic advantages through other incentives or relaxations. To facilitate vehicle
scrapping and data collection, the Ministry of Road Transport and Highways (MoRTH) has
established an official portal called the Voluntary Vehicle Scrapping Application
catering to both Registered Vehicle Scrapping Facilities (RVSFs) and individual vehicle
owners.

Tyre recycling industry

The tyre recycling industry in India is gradually gaining momentum as a result of
growing environmental consciousness and government-driven initiatives. With the countrys
robust automotive industry generating a significant volume of tyre waste, the need for
more sustainable practices has increased.

To promote recycling practices, the Indian government has introduced legislation such
as the Plastic Waste Management Rules in 2016. This legislation incorporates the concept
of Extended Producer Responsibility, holding manufacturers accountable for the entire
lifecycle of their products, including proper disposal and recycling. Such initiatives
have created a supportive framework for the tyre recycling industry to thrive.

In the current context of tyre recycling, advanced techniques such as pyrolysis and
de-vulcanisation have emerged as viable solutions for effectively repurposing tyres,
despite their large size and durability. While their primary application as fuel is
recognised, the predominant end use for tyres continues to be in the form of ground
rubber. Annually, the production of new tyres exceeds 1.6 billion units, resulting in
approximately 1 billion waste tyres.

India produces approximately 1.5 million metric tonnes of End-of-Life Tyres (ELT) each
year, out of which only 450,000 metric tonnes are effectively recycled by the formal
sector.⁹}

With increasing environmental concerns, there is a growing need for adopting
sustainable practices across various sectors, including the automotive industry. With
further awareness campaigns, improved waste collection systems and ongoing efforts to
reduce investment barriers, the tyre recycling industry is poised to play a crucial role
in Indias pursuit of a greener and more sustainable future.

Waste processing methodologies

Composting

It is a controlled, aerobic process that converts organic materials into a
nutrient-rich mulch through decomposition. The organic waste material is broken down by
microbes, which can reduce its bulk in half. The technique of composting helps to
concurrently process and recycle waste and sewage sludge. Composting is projected to
become more prominent, as landfill and solid-waste incineration options are limited by
more stringent environmental regulations and siting constraints. Sorting and separating,
size reduction and breakdown of the waste are the steps that make up the process.

Bio methanation

A high-rate bio methanation technique that enables the simultaneous production of
biogas and bio manure and the integrated treatment of sewage and biodegradable solid
waste, can be used to treat groundwater and wastewater to produce potable water. It can be
applied in a decentralised manner across different regions of India for the treatment of
sewage and organic solid waste.

The Anaerobic Gas Lift Reactor (AGR) Technology for the treatment of organic solid
waste and simultaneous production of biogas and bio manure, along with a Nano filtration
(NF) setup, forms the basis of the high-rate bio methanation method. In addition, the
biodegradable waste is fermented anaerobic ally in a sealed environment to produce methane
rich biogas fuel as well as sludge for composting. Bio methanation is a scientifically
viable alternative to composting due to the high organic and moisture content of Indian
municipal waste.

Refuse Derived Fuel

Refuse Derived Fuel (RDF) is a processed form of municipal solid waste, wherein
non-recyclable and non-compostable materials are mechanically and/or biologically treated
to produce a fuel source. This fuel, often in the form of pellets or fluff, can be
utilised as an alternative to traditional fossil fuels in various industrial processes,
including energy generation in cement kilns, power plants, and other combustion
facilities. RDFs production not only diverts waste from landfills, aiding in waste
management, but also contributes to reducing the demand for virgin fossil fuels, thereby
offering an environmentally and economically beneficial waste-to- energy solution.

Waste to Energy

Energy-from-waste (EfW), also referred to as waste-to-energy (WtE), is the process of
turning waste into a fuel source or to generate electricity, heat through initial waste
treatment. WtE is used for energy recovery. The growing demand for better WtE technologies
has led to innovations, such as DLE, which employ procedures- with nearly no emissions,
are cost- effective and consume little energy. The Indian government supports
waste-to-energy through a number of subsidies and incentives as it considers WtE to be a
renewable technology. The Ministry of New and Renewable Energy (MNRE) promotes all
technological solutions for energy recovery from municipal and industrial waste. The MNRE
is furthering the research of waste to energy by providing financial assistance for
R&D initiatives on a cost-sharing basis in keeping with the MNREs R&D Policy.
Moreover, MNRE funds the initiatives involving applied R&D as well as studies on
resource assessment, technology advancement and performance evaluation.

Bio-mining/Bio-remediation

Bio-mining is the process of cleaning up open dump sites by separating the waste into
its constituent parts, converting the biodegradable portion into compost, methane gas or
biodiesel and using the remaining non-recyclable plastic as rejected derived fuels that
can be used as an alternative fuel in industries. The compostable fraction of the waste is
separated through sifting and sold for use in landscaping or as a soil enhancer or
fertiliser. The Solid Waste Management Regulations, 2016, mandate bio-mining of legacy
waste instead of capping, which means covering the waste with soil. Sanitary and
packaging wastes must be disposed of by the producer and these regulations, which focus on
separating waste at the source, also cover user expenses for collection, disposal and
processing from the bulk generator.

Plasma gasification

Municipal waste is converted into usable by-products using the waste-treatment
technique known as plasma gasification, which combines electricity and high temperatures
(burning). Despite the fact that the process is sometimes mistaken for incinerating or
burning waste, plasma gasification does not combust waste the way incinerators do. The
inorganic waste is changed into slag, an inert form of vitrified glass, while the organic
waste is transformed into a gas that retains all of its chemical and thermal energy. The
method can generate electricity while reducing the amount of waste dumped in landfills.
The processs glass-like slag left over from the melted plasma as waste, is safe to use as
a building material. Plasma torches are used to burn down hazardous materials and chemical
weapons.

Scientific landfills

Scientific landfills reduce methane production and serve as degassing systems. Methane
production is slower than in normal landfills because the majority of the contaminants in
the waste are absorbed by the layers. Vertical wells assist in the routine methane
extraction in scientific landfills, which is then used to produce heat and energy. Due to
their ineffective garbage management and haphazard design, landfills in India present a
slew of concerns. One of the greatest dangers that landfills pose is the discharge of
methane gas as a result of waste accumulation. Scientific landfills can treat waste while
it is being disposed of, making them useful for urban waste management. In India,
landfills were only recognised as dumpsites located away from city limits.

Digital platforms for waste pickup

The development of the circular economy is made feasible by the digitalisation of the
globe, which enables public bodies and waste management operators to offer their clients
and society better services. The promise of digital technologies is a safer, more
transparent waste management system that more efficiently connects to other industries in
a future circular economy and better derives valuable materials from waste streams.
Economically, environmentally and socially, the waste management sector can be further
improved through digital transformation.

Decentralised waste management

The decentralised approach has the potential to minimise the amount of waste by
altering peoples attitudes and lowering transportation costs, traffic congestion, air
pollution, road maintenance costs and groundwater contamination through leachate seepage.
As a result, it might be one of the most efficient ways to address Indias waste
management concerns. Most significantly, it reduces waste that is dumped in landfills,
which is a fundamental limitation of the solid waste management system.

The decentralised Waste Management Technology Park was inaugurated by the Government of
India and the East Delhi Municipal Council (EDMC) in New Jaffrabad, East Delhi, on
MarcRs.29, 2022. It aims to achieve zero waste, zero energy and zero landfill. The
projects successful demonstration will enable Indias cities, towns and villages to
reproduce the model.¹⁰}

Technological advancement

Technological advancement is a crucial factor that can propel efficient waste
management in India. Using cutting-edge technologies, including automatic waste
segregators and on-site waste processing methods, such as, composting, bio methanation,
bio CNG, gasifies and pyrolysis, among others, can transform the way waste is currently
handled in India. The waste management industry needs to adopt policies that foster a
circular economy.

Implementation of government initiatives

In an attempt to effectively manage waste and pollution in India, the Indian government
has launched numerous national projects, including the Swachh Bharat Mission, the
National Water Mission and the Waste to Wealth Campaign. Also, the strategy for
creating decentralised waste processing facilities within cities, to mitigate the concerns
of managing new MSW and legacy waste, has been emphasised.

Development of smart cities

A smart city is characterised by its optimal strategies in effectively managing
renewable energy and proper waste disposal. As a result of government initiatives, such as
the 100 Smart Cities Mission, waste management businesses around the country now have
greater opportunities due to the development of smart cities.

Increasing number of private players

Private operators are fast expanding, notably in municipal authorities in West Bengal,
Karnataka and Haryana, where the waste management is inadequate due to insufficient
planning

and lower-than-expected state government expenditure. As a result, the Government
continuously supervises the market conditions and assists industry players by easing
investment rules and offering monetary incentives. Several businesses are coming up with
novel ways to manage waste and transform it into useful resources. Yet, a high level of
competency is required to deal with the concerns that the waste management business in
India is facing.

Challenges

Insufficient/Inefficient segregation methods

As recyclables, organic waste and toxic waste are all dumped with the regular waste
without separation, waste management becomes challenging. It is believed that building new
landfills will only relocate the waste management problem. Urban landfills are
experiencing increased pressure due to growing urbanisation.

Human behaviour

The waste management industry faces numerous challenges due to human behaviour, such as
the substantial generation of waste, limited awareness and education, instances of illegal
dumping, resistance to adopting sustainable practices, barriers to participation, and
inadequate infrastructure. Effectively tackling these challenges necessitates the
implementation of awareness campaigns, educational initiatives, policy interventions, and
the development of improved infrastructure to promote and foster sustainable behaviour.

Infrastructure

For India to become a top-tier economy, civil infrastructure needs to be strengthened.
Effective economic growth requires building high-quality infrastructure that meets
consumer needs while safeguarding the environment. To achieve sustainable development,
waste management infrastructure is crucial. Future SWM infrastructure development in India
must focus on material, energy and nutrient recovery. Existing technology can be used to
recover resources from waste. Nevertheless, almost all municipal agencies carelessly dump
solid trash at a dump yard inside or outside the city.

Company overview

Antony Waste is a market leader in the Indian Municipal Solid Waste (MSW) management
sector. The Company offers a wide range of MSW services, mostly to the Indian municipal
corporations, including services for the collection, transportation, processing and
disposal of solid waste across the country. The Company primarily works on MSW C&T
(Collection Transport), MSW processing and automated sweeping projects through its own
subsidiaries or subsidiaries. The Company has over two decades of operational excellence
and has worked on more than 35 completed and ongoing projects. In the MSW sector, the
Company is the second- largest domestic participant. The Company, through its 9,378
full-time employees and fleet of 2,094 specialised vehicles has managed to provide waste
management solutions to over 43 lakh households, The Company also operates the largest
waste processing facility in Asia, located in Kanjurmarg, Mumbai, where approximately
5,800 tonnes of waste are processed daily.

The Company has deep industry expertise in both landfill construction and management,
making it one of the major participants in the area. Also, it is present in Indias newly
formed MSW-based Waste to Energy sector (WTE). Beginning as a simple business of waste
collection and transportation, it has greatly evolved in the field of solid waste
management with the adoption of cutting-edge technologies and innovations, transforming
this business into a complex operating system with the use of technologies in garbage
compaction, processing, use of transfer stations and management of sanitary engineered
landfills.

Business model

The Company provides complete waste management solutions, including services for
collection, transportation, disposal, recycling and resource recovery. Its Solid Waste
division is handled and managed locally by companies that focus on certain regions across
the country. The Company offers integrated mechanical and manual street sweeping, sales of
commodities and revenue from scrap sales. The Company is primary concentrating on working
with municipal corporations having good financials and credit ratings. Refuse derived
fuel, bio-mining and bio methanation are three of its emerging growth areas.

Revenue generation

Municipal Solid Waste, Collection and Transport (C&T) account for 54% of the
Companys total revenue. Primary collection is conducted through door-to-door vehicles,
transportation of waste to the processing facility and transfer station, or a landfill
disposal site. Here, the revenue calculation is based on the number of trips, per tonne
and fixed per day. The organisations growth is calculated using a flat rate, inflation
and other formulas. As of MarcRs.31, 2023, it has 16 active contracts and the average life
of an ongoing contract is 7.7 years. The processing of MSW makes up 20% of the revenue,
which consists of classifying and separating waste from MSW, then composting, recycling,
shredding and compressing it into RDF. The revenue is calculated on a per tonne basis and
the typical duration of the Companys present contract term is 23 years. The Company
currently has three active contracts. The Company generates 26% of its revenue from its
contracts and other sectors. This segment includes revenue from mechanical power sweeping,
where the billing terms are either per hectare or per kilometre, while revenue from
contracts are those resulting from IND-AS treatment for capital expenditures made at
Design, Build, Own, Operate and Transfer (DBOOT) projects. The Company currently has
contracts for two DBOOT projects and five mechanical sweeping projects

Bidding process and receivables

The municipal corporations adhere to strict guidelines while placing service orders
through bids. Operators must be experienced and possess proven execution skills in order
to be considered. Additionally, the Company thoroughly investigates the municipal
corporations financial situation and history of earlier payments as part of its due
diligence procedure. The Antony Waste Groups bidding procedure is carried out in
accordance with a set of processes, which include bio mining, segregation, waste to energy
and initial assessment analysis.

Core strengths

Experienced management team- The Company is managed by experienced professionals
possessing extensive industry knowledge, ensuring smooth organisation-wide functioning.

Technological development- The Companys access to tech-enabled and equipment
allows it to ensure seamless operations as well as employ innovative techniques for waste
segregation and processing.

Diverse business model- The Companys diverse business strategies help it to
solidify its market position and expand its investment portfolio.

End-to-end solutions- The Company, which has been in the MSW management business in
India for more than 20 years, offers a comprehensive range of MSW services, including
solid waste collection, transportation, processing and disposal.

Project execution track record- The Company has a proven track record of project
completion.

Outlook

AWHCL aims to establish itself as a reliable partner for its clients and make a
substantial contribution to a sustainable future through its coordinated efforts for
effective waste management. Through focused bidding for important MSW management
contracts, it remains committed to leveraging new opportunities in the MSW management
sector in order to expand its geographic reach. By working with Indias Municipal
Corporations for solid waste management, the organisation concentrates on revenue
creation. The Company focuses on safeguarding the environment, by the provision of
top-notch services across the nation.

Going forward, Antony Waste is committed to ensure regularity in waste management and
nurture a strong sustainable model. To mitigate financial risks, the Company is adding
more than no municipal revenue streams. The Company has created a strong team to explore
the ancillary waste management businesses.

Growth strategy

The Company is aware of the potential for expansion in the MSW management market. It
keeps making strategic

project decisions while carefully increasing the organizations market reach by
improving the MSW value chain through diversification into new waste management areas. In
order to increase profitability and efficiency, it has switched from using a cluster-based
approach to bidding on projects, focused on cluster bidding for contracts in new states;
while working on six active projects in the MMR and the NCR. Numerous opportunities in the
sector have emerged as a result of the growing trend of privatisation of the MSW
management industry. Experience, credentials and financial stability are required for the
Company to be eligible to bid on the majority of projects in the MSW sector as part of the
rational selection of projects for expansion. The organisations continued emphasis is on
calibrated growth while choosing projects that are commercially viable. Also, it has
pursued several projects in urban or semi-urban locations with low counterparty risk and
positive operating profits. The main focus is on converting garbage into energy using
reliable raw materials and taking up more contracts to lower power offtake. Selling Refuse
Derived Fuel (RDF) and recyclables is another way of income generation. Considering the
number of dump sites from over previous 15 years, which may be used to reclaim dump sites
in Tier II and Tier III cities, bio mining has enormous potential.

Risk management

Types of risks
Description
Mitigation measures

Competition
risk
The increasing number of private participants in the waste
management industry can result in an increased demand and add competitive pressure on the
Company.
With over two decades of expertise, the Company has established
quality service standards and offered a wide range of waste management services. Over the
years, the Company has created strong performance barriers and qualifications which
ensures being pre-qualified for most of the projects that the Company wants to be bid for.

Financial risk
Economic uncertainty, inflation, rising interest rates and
the liquidity crisis can adversely impact the Companys financial assets.
The Risk Management committee continuously analyses and evaluates
risks to reduce financial volatility and the Companys risk management strategy exercises
a measured approach to address the primary financial risks.

Supply chain risk
The energy, fuel and adequate availability of vehicle
spares could would hamper our service commitment to client which may affect the Companys
overall profitability.
The Company has enacted strategic measures to mitigate risks by
creating multiple supply channels and procuring goods from various geographic areas. These
endeavours are designed to reduce the impact of geopolitical incidents on operational
continuity. Sufficient reserves, strong connections with original equipment manufacturer
(OEM) spare part providers, as well as preventive and proactive maintenance, collectively
contribute to ensuring the satisfaction of the clients.

Cyber and data security risk
Cyber threats can affect the Companys operations by
causing confidential information to be lost, affecting its reputation.
In order to enhance operational efficiency and facilitate effective
communication among different departments, the Company has embraced advanced technologies.
Additionally, a range of sophisticated cybersecurity protocols have been implemented to
effectively address and mitigate potential cybersecurity vulnerabilities.

Types of risks
Description
Mitigation measures

ESG risk
Hazardous gaseous emissions, worker health and safety and unethical
waste management procedures can all have an impact on the Companys operations.
These ESG risks have been incorporated by the Company into
all aspects of its operations and organisational strategy. In addition, it has established
clear goals, KPIs and a road map for performance management and ESG compliance beginning
in FY23.

Human resource risk
Improper processes of waste segregation and hazardous chemical
processes of waste management can pose a threat to the health and safety of the Companys
personnel.
The Company is dedicated to conducting training and
awareness programmes for its workforce, aiming to educate them about proper waste
segregation techniques. These programme are designed to empower employees with the
knowledge and understanding needed to effectively separate waste at the source, promoting
recycling and responsible waste disposal practices.

Human resources

AWHCL acknowledges its people as the true contributors to its success. Recognising the
crucial role of its human capital, the Company always puts its people first. The expertise
and dedication of the Companys skilled workforce, help create a high-performance work
culture and contribute to long-term value creation for customers, shareholders and
investors. To ensure workplace safety, training programmes on Health, Safety and the
Environment (HSE) are organised on a regular basis to prevent injuries and accidents. The
Company is committed to fostering an inclusive and diverse workplace that does not
discriminate people on the grounds of caste, creed, colour, sex, religion or nationality.
It is also working to develop a conducive workspace that supports and fosters the growth
and development of its personnel. The Companys target is to achieve Lost Time Injury
Frequency Rate (LTIFR) rate of <0.30 by FY24. The Companys premises are covered by the
POSH policy. All the employees now have access to the organisations prevention of sexual
harassment policy. The Company also maintains gender diversity of 4.1% of staff members
and 4.8% amongst its Swachhta Warriors.

ESG initiatives

For businesses across the world, operating a socially responsible manner has become a
business imperative. The Company has a comprehensive ESG policy in place that has been
approved by its Board. The policy identifies crucial areas for good stewardship that have
an impact on the Companys business operations. During FY2023, the Company reduced its
emissions by about 4,688 metric tonnes of CO₂ equivalent. One of the Companys
sites produces renewable energy utilising waste materials (meeting more than 80% of the
sites operational energy needs). To lower emissions, greenhouse gases produced by the BLF
station and leachate treatment plan are captured. The vehicles for C&T adhere to BS-VI
standards and retain PUC. Biochemical Oxygen Demand (BOD) values in leachate are also
reduced to acceptable ranges.

The Company has successfully completed Maharashtras first Integrated Waste to Energy
Project which was inaugurated by the Honourable Prime Minister, Shri Narendra Modi on
August 1, 2023. The state-of-the-art facility will process 1,000 tonnes Per Day (TPD) of
municipal waste, including recovery of recyclable materials and conversion of wet waste
into compost. Approximately 750 TPD of non-recyclable dry waste will be processed in the
Waste-to-Energy (WTE) Plant generating 14 Megawatts (MW) of power through controlled
incineration meeting all environmental emission standards. The project utilises recycled
steam from the Chikali Sewage Treatment Plant (STP), eliminating the need for fresh-water
dependency and conserving valuable resources. By diverting waste from landfills and
reducing methane emissions, it is estimated that ~7 lakh tons of CO₂ annually,
equivalent to ~1.5 lakh passenger cars emissions will be avoided.

Financial performance

Consolidated

The Company generated total revenue worth Rs..876.6 crore in FY23, when compared to
Rs..666.8 crore generated in FY22. The Companys EBITDA stood at Rs.167.9 crore in FY23,
up from Rs.166.5 crore in the previous the fiscal year. Labour, Fuel and Other operating
expenses constitute the main operating heads of expenses for the Company, with each of
them constituting approximately 25.1%, 12.5%, 25.2% of the revenue as compared to 28.7%,
13.5%, 25.3% , respectively in the previous year. The tenders have an in-built escalation
clause, which provides a pass-through benefit in case of increase in wages, fuel prices
and other repair costs.

Interest expense

Aided by a strong balance sheet, and steady operational profile, the Companys credit
rating has improved over the years. This underscores the Companys ability to lower its
overall financial costs. The effective cost of borrowing has come down from 12.4% in FY
2020 to 9.3% in FY2023.

Liquidity and balance sheet:

The Company has maintained a healthy liquidity position in FY23 despite various
challenges. Its cash flow from operations clocked a CAGR of 32% between FY19 and FY23.
The cashflow from operations (post working capital changes) stood at Rs..90 crore vs.
Rs.105.1 crore last year. Total cashflow from investments reached Rs..260.4 crore in FY23
as compared to Rs.140.1 crore from FY22, reflecting of the ongoing capital expenditure at
the Companys Kanjur, PCMC WtE facilities and also due to new contract wins (Nashik
C&T, PCMC Power Sweeping, and Nagpur Power Sweeping).

Standalone:

The Company generated total revenue of Rs..73.0 crore in FY23 compared to Rs..71.2
crore in FY22, marking an increase of 2.47%. EBITDA for the Company was Rs..24.9 crore in
FY23, as opposed to Rs..29.8 crore during FY22. The Company also recorded PAT at Rs.12.7
crore in FY23 as opposed to Rs.18.6 crore in FY22.

Key financial highlights

Particulars
Standalone
Consolidated

FY 2022-23
FY2021-22
FY 2022-23
FY2021-22

Total Income (rupees in lakh)
7,295.08
7,119.41
87,659.51
66,678.53

EBITDA (rupees in lakh)
2,488.91
2,984.94
16,792.56
16,649.99

EBITDA Margin (%)
34.12%
41.93%
19.16%
24.97%

PBT
1,711.35
2,366.23
10,228.85
11,269.42

PAT (rupees in lakh)
1,272.91
1,855.98
8,456.45
9,040.01

PAT Margin (%)
17.45%
26.07%
9.65%
13.56%

Total Assets (rupees in lakh)
25,997.11
25,637.39
125,840.82
96,476.25

EPS (in rupees)
4.50
6.56
24.07
24.00

Key financial ratios

Particulars
Standalone
Consolidated

FY 2022-23
FY2021-22
FY 2022-23
FY2021-22

Current Ratio (in times)
2.9
2.50
1.31
1.44

Debt Equity Ratio (in times)
0.13
0.16
0.72
0.41

Net Profit Margin (in %)
17.45%
26.07%
9.65%
13.56%

Return on Net Worth (in %)
6.28%
9.81%
17.41%
21.69%

Interest Coverage Ratio (in times)
5.56
6.81
4.84
6.50

Cautionary statement

There are forward-looking statements in the Management discussion and analysis, which
can be recognised by phrases like plans, expects, will, anticipates, believes,
intends, projects, estimates, and so on, about the future business prospects and
financial performance of Foods and Inns, within the meaning of the applicable securities
laws and regulations. Forward looking statements include all discussions of expectations
or forecasts for the future, the Companys growth strategy, product development, market
position, expenses and financial outcomes. The actual outcomes could significantly differ
from those projected due to a number of risks and uncertainties that could affect all of
these possibilities and predictions. These statements are subject to a number of risks and
uncertainties, including, but not limited to, risks and uncertainties relating to changes
in earnings, the ability to manage growth, competition (both domestically and
internationally), economic growth in India and the target countries globally, the ability
to recruit and retain highly skilled professionals, time and cost overruns on contracts,
the ability to manage international operations and changes in government policies and
actions with respect to these matters. It is possible that past performance will not
predict future performance. The Company does not commit to providing any updates to any
forward-looking statements made sometimes by or on its behalf, nor does it undertake to do
so in the event that any of these forward-looking statements prove to be materially
inaccurate in the future.}}}

antony waste handling cell ltd share price Management discussions

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Risk Disclosure on Derivatives

We are ISO 27001:2013 Certified.

State	No. of operational RVSFs Description	No. of Vehicles scrapped
Uttar Pradesh	4	6,247
Gujarat	3	1,244
Assam	1	357
Madhya Pradesh	1	220
Haryana	2	134
Chandigarh	1	18
Grand total	12	8,220

Types of risks	Description			Mitigation measures
Competition risk	The increasing number of private participants in the waste management industry can result in an increased demand and add competitive pressure on the Company.			With over two decades of expertise, the Company has established quality service standards and offered a wide range of waste management services. Over the years, the Company has created strong performance barriers and qualifications which ensures being pre-qualified for most of the projects that the Company wants to be bid for.
Financial risk	Economic uncertainty, inflation, rising interest rates and the liquidity crisis can adversely impact the Companys financial assets.			The Risk Management committee continuously analyses and evaluates risks to reduce financial volatility and the Companys risk management strategy exercises a measured approach to address the primary financial risks.
Supply chain risk	The energy, fuel and adequate availability of vehicle spares could would hamper our service commitment to client which may affect the Companys overall profitability.			The Company has enacted strategic measures to mitigate risks by creating multiple supply channels and procuring goods from various geographic areas. These endeavours are designed to reduce the impact of geopolitical incidents on operational continuity. Sufficient reserves, strong connections with original equipment manufacturer (OEM) spare part providers, as well as preventive and proactive maintenance, collectively contribute to ensuring the satisfaction of the clients.
Cyber and data security risk	Cyber threats can affect the Companys operations by causing confidential information to be lost, affecting its reputation.			In order to enhance operational efficiency and facilitate effective communication among different departments, the Company has embraced advanced technologies. Additionally, a range of sophisticated cybersecurity protocols have been implemented to effectively address and mitigate potential cybersecurity vulnerabilities.
Types of risks		Description	Mitigation measures
ESG risk		Hazardous gaseous emissions, worker health and safety and unethical waste management procedures can all have an impact on the Companys operations.	These ESG risks have been incorporated by the Company into all aspects of its operations and organisational strategy. In addition, it has established clear goals, KPIs and a road map for performance management and ESG compliance beginning in FY23.
Human resource risk		Improper processes of waste segregation and hazardous chemical processes of waste management can pose a threat to the health and safety of the Companys personnel.	The Company is dedicated to conducting training and awareness programmes for its workforce, aiming to educate them about proper waste segregation techniques. These programme are designed to empower employees with the knowledge and understanding needed to effectively separate waste at the source, promoting recycling and responsible waste disposal practices.

Particulars	Standalone		Consolidated
Particulars	FY 2022-23	FY2021-22	FY 2022-23	FY2021-22
Total Income (rupees in lakh)	7,295.08	7,119.41	87,659.51	66,678.53
EBITDA (rupees in lakh)	2,488.91	2,984.94	16,792.56	16,649.99
EBITDA Margin (%)	34.12%	41.93%	19.16%	24.97%
PBT	1,711.35	2,366.23	10,228.85	11,269.42
PAT (rupees in lakh)	1,272.91	1,855.98	8,456.45	9,040.01
PAT Margin (%)	17.45%	26.07%	9.65%	13.56%
Total Assets (rupees in lakh)	25,997.11	25,637.39	125,840.82	96,476.25
EPS (in rupees)	4.50	6.56	24.07	24.00