Rameshwar Gattani, Founder and Director at Stickler Envirosol Private Ltd at Scrap Yard India, talks to us about how their operation offers solutions to auto recyclers looking to invest and change their traditional operating practices.
Rameshwar, can you provide a brief overview of the current methods towards vehicle dismantling and recycling in India?
Today, vehicle dismantling is primarily done manually. You must have heard about the famous place ‘Mayapuri’1 for this matter.
1Mayapuri is an industrial locality in West Delhi. It used to be a major hub of heavy metal and small scale industries, but most heavy metal industries moved out following recent government sanctions. The place is now a residential area, light metal factories, scrap markets, and automobile service stations. en.wikipedia.org/wiki/Mayapuri
Would it be fair to say that India’s current vehicle recycling processes are antiquated and need to be brought more up to date and be on par with countries with more modern methods? If so, why does this need to happen, what needs to occur for this to be achieved, and the challenges it will face?
India is the 4th largest country in terms of new vehicle sales. It is poised to grow further, all thanks to changing demographics and disposable income.
But for dismantling, we don’t have the required technology nor adequate infrastructure. We expect to have large quantities of ELV’s in the coming years; that is why it is very important to have the necessary technology and infrastructure in place to process the large amount of forthcoming ELVs.
Present methods and small infrastructure can not handle it. These practices are not even safe for both the workers and the environment.
There are many challenges, which include:
- Creating awareness about the scrapping of vehicles
- Lack of recycling technology
- Lack of infrastructure to scale
- Unorganised supply chain
- Unorganised spare parts market
What is your vision of a modern vehicle recycling operation, and how will you convince those traditionally operating to invest and change their operating practices?
At Scrap Yard India we believe that professional vehicle recycling is the next big thing for Indian entrepreneurs. It is a multi-billion dollar opportunity that nobody wants to miss.
But one has to consider what it takes to make it happen. Firstly, the correct machinery and equipment will be needed to do the job. Secondly, there needs to be a proper infrastructure for such high scale activity. Thirdly, the supply chain needs to meet the facility’s requirements, and finally, many regulatory requirements must be adhered to.
We at Scrap Yard India provide solutions for all of the above, making us the only company in India that can provide end to end solutions for the upcoming vehicle recycling industry.
Scrap Yard India is an innovative end to end digital platform designed to offer a unique experience to sell end of life vehicles and a tech-enabled marketplace for selling used spare parts. Scrap Yard India also provides smart recycling solutions to the automobile and metal industry.
At Scrap Yard India, we offer:
- Scrapyard Development (complete set up of the yard
- Skill Development programs (Training & SOP)
- Vehicle Valuation Services
- Supply chain Management (both reverse & forward)
- One-stop Compliance services (for both customers & yard owners)
- Scrap Yard India Management Solutions (robust backend with software and mobile apps) for ease of business and great customer experience
- Digital Marketplace for selling of spares and scrap
We believe technological problems need to be solved with the help of technology only. We are working closely with a few of the existing entities and working on more affordable solutions for them to switch smoothly. But, after the vehicle scrappage policy, we are also witnessing renewed interest from many other businesses.
The Indian government has recently introduced a scrappage scheme to the country. What methods are being used to encourage the public to scrap their cars?
The draft copy is yet to be released but what we do understand from the announcement made by the ministry is that:
1. they are making it mandatory for all Govt. & PSU vehicles of 15 years of age to be scrapped compulsorily. This procedure will begin in April 2022.
2. all private vehicles which reach the age of 15 years (commercial) or 20 years (passenger), will have to undergo automated fitness tests.
3. there will be the introduction of Green taxes over and above existing taxes,
4. For points 2 & 3, they are going to increase the cost to the exchequer and will indirectly discourage them from maintaining such high polluting vehicles
5. The Government is contemplating offering some incentives on taxes if the consumer buys a new vehicle, in particular, there will/could be much more incentive to switch to an electric vehicle (there will be much more incentive if the consumer switches to an EV).
6. OEMs are also expected to offer some incentives for buying new vehicles against the scrapping of the old ones.
7. Points 5 & 6 are a kind of encouragement for ELV owners. He may end up getting more rewarding benefits such as:
- Good price of scrap
- Discount on taxes
- Incentives from OEMs
I believe that overall it is a good move which initially will be slow but will eventually gain more momentum later on.
There is much focus on the scrapping of vehicles at the moment. Your franchise scheme seems to concentrate on depollution and the reuse of parts. Do you think that this is the future of auto recycling in India, and what perceptions do you need to make this happen?
The scrappage policy is very clear. The focus is on creating an atmosphere and preparing the mood among all stakeholders for the future. We can not have only incoming vehicles on the roads; we have to create an outgoing mechanism. And policy is doing exactly that.
It is vital to make our cities clean and green, for workers’ health and safety, environmentally safe practices, for a sustainable future and a better circular economy.
We are very positive about it.
All our products and services are developed to consider all aspects of native Indian’s lives.
The Scrap Yard India Franchise Program is doing the same.
By creating multiple small yards in every pocket of India instead of having a few very large ones at distinct locations. We are doing whatever it takes, and we are gaining great traction too. But we also understand it is just beginning; there is still a lot more work to be done.