Waste Management India

February 2015

Executive Summary
Market

Drivers &
Challenges

Trends
Government
Initiatives

Waste management market in India was valued INR x bn in 2013 and is expected to reach INR y
bn by 2018
India is a growing market for waste management services as per capita waste generation is
increasing
Drivers:
Increasing Urbanization
Initiatives taken at corporate level
Government & NGOs Initiatives
Increased Awareness Regarding Environmental
Hazards
Operational Advantages in India

Challenges:
Lack of Collection and Segregation at
Source
Scarcity of Land
Lack of Interest amongst Consumers

Major Contributors: Metros and Class A cities

Increasing Interest in Waste-to-Energy projects
Rules for Waste Management
Major thrust to waste management through state and central pollution control boards
Major Players

Competition

Company A

Company B

Company C

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

Company D

Macroeconomic Indicators
Market Overview
Business Opportunities
Drivers & Challenges
Trends
Government Regulations
Competitive Landscape
Strategic Recommendations
Appendix
WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

Economic Indicators (-/-)

GDP at Factor Cost: Quarterly
INR tn
c4
b4
a4

15
14 d1
c1
13 b1

c3
b3
a3

d2
c2
b2
a2

12 a1
11
Q1

Q2
2010-11

2011-12

2012-13

Q3
2013-14

Q4

Inflation Rate: Monthly

%
2.0

1.5

s
q

1.0

t
r

0.5
0.0

Jun 2013 - Jul 2013

Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

Oct 2013 - Nov 2013

4

India is a growing market for waste management services as

per capita waste generation is increasing
Market Overview
Due to tremendous growth in the Indian economy and high consumption rate, waste management services is rising
steadily
Indian waste management market is currently pegged at INR x bn and is expected to grow at a CAGR of xx% till 2018
Currently, waste management in India largely refers to picking up waste from residential and industrial areas and
dumping it at landfill sites
In most cities, waste collection is usually done on a contract basis by rag pickers, small-time contractors and
municipalities

Waste Management Revenue Opportunity

Waste Generation Trend

Per Capita Waste Generation

INR bn

grams/day
XX

E
D

a1

a2

a3

a4

a6

a5

D
C
B

B
A

0
2013

2014e

2015e

a5

2016e

2017e

2018e

a1

1971

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

a2

a3

a4

1981

1991

1997

2025e
5

Trend of urbanization has a played significant role in the

enhancement of municipal waste generation in India
Municipal Solid Waste (MSW)

MSW Generation, Collection and Treatment

XX

Tonnes Per Day (TPD)

XX

XX
XX

XX

a1
a2
a3

0
Generation

Urban local bodies spend between INR 500-1,500 per ton on

solid waste management

Collection

Treatment

MSW Composition
X

Organic Waste

Less than X% on treatment and disposal

Non Organic Waste

z

Recyclable

Essential to prevent environment pollution

Note: According to Central Pollution Control Board (CPCB) report 2012-13

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

SAMPLE

every component of the waste to energy value chain

MSW to Energy Value
Chain (2/2)

Business Opportunities (2/2)

Transportation and
Logistics

XX
XX

MSW to energy recovery

XX
XX

Waste Management at
Dumpsite

XX
XX

Organization/financing

XX
XX

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

Various companies will be benefitted in each part of the

waste to energy value chain

SAMPLE

Components In Value
Chain

Companies that could benefit from the Waste to Energy sector

Primary Collection and

Segregation

Separation of Wet Organic

Wastes

Transport and Logistics

Storage and Secondary

Collection

Waste Recycling

MSW Waste to Energy

Recovery

Management of Waste at
Landfills

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

Increasing urbanization has resulted in considerable

increase in the volume of waste generated in India
Increasing urbanization

Impact

Developing countries, like India, are witnessing massive migration of population from rural
areas to urban areas
Post Independence era, while the population of India had grown three times, urban population
grew five times
About one-third of urban India lives in metropolitan cities which has a million plus population
Increasing urbanization has put pressure on facilities like transport services, housing and
drainage

SAMPLE

Population Growth and Impact on Overall Urban Waste Generation

Year

Population (mn)

Total Waste generation (000 Tonnes/year)

2001

2011

2021e

2031e

2036e

2041e

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

Lack of collection and segregation at source and scarcity of

land impede industrial growth
Lack of Collection and Segregation at Source

Impact

Primary collection of waste is not done at the place of generation

The collection bins used in various cities are not properly designed
Moreover, bins have not been installed at proper locations resulting in poor collection efficiency

Storage of waste at source is lacking

SAMPLE

Domestic waste thrown on streets

Construction debris left unattended
Bio-medical waste disposed in municipal stream
Industrial waste disposed off in open areas

Precious metals and plastic which could have been recovered are more often than not destroyed
as segregation of wastes hasnt been done properly; e-wastes are dealt in a similar way as that
of municipal and biomedical wastes

Scarcity of Land

Land required for MSW Disposal

Land requirement for disposing municipal waste

will rise from 200 sq. km. in 2011 to 1,400 sq.
km. in 2047
The urban areas, which have the largest
concentration of MSW, are also the most landscarce, and therefore, the opportunity cost of
using such land for MSW disposal is also very
high

Years

Land Required (SqKm)

City Equivalents

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

Impact

10

Metropolitan cities and Class A cities generate over x% of

waste in India
Major Contributors: Metros and Class A cities
India produces around x lakh MT of e-waste per year

A handful of cities
account for the
majority of waste
generated

Mumbai generates nearly 61,000 tonnes of electronic waste per year followed by New Delhi, which generates
43,000 tonnes of waste
Bangalore ranks third in terms of e waste generation and produces nearly 37,000 tonnes of waste per year

SAMPLE

Cities are getting more and more crowded resulting in more generation of waste
Lot of people are migrating from villages to cities in search of jobs

Solid Waste Generation Share*

Solid Waste Generation in Metro Cities*

Mumbai

a1

Kolkata

a2

Delhi

a3

Chennai
z
Metro Cities

Class A Cities

a4

Hyderabad
Others

Bengaluru

Tonnes Per Day

a5
a6

Note: Waste generation quantities in 2011; Class A cities: Population Range: 1,00,000 4,999,999

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

11

Pollution control boards are responsible for prevention and

control of environmental pollution
XX

XX
XX
XX
XX
XX

SAMPLE
Rules for Waste Management

Waste Types

Rules

Biomedical Waste

XX
XX
XX

Municipal Solid Waste

XX
XX

E Waste

XX

Hazardous Waste

XX

Batteries

XX

Re-cycled Plastic Waste

XX
WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

12

PPPs have helped in improving efficiency and effectiveness

due to better management and strong investments
XX
XX

Public Private
Partnership

xx
xx
Xx
Xx
Xx
xx

City/State
X

SAMPLE
PPP Initiative

X
X

X
X
X
X

X
X
X
X
WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

13

Porters Five Forces Analysis

SAMPLE
Impact
XX

Threat of New Entrants

X

Impact
XX
Competitive Rivalry

Impact
XX

Impact
XX

X
Bargaining Power of Suppliers
X

Bargaining Power of Buyers

X

Threat of Substitutes

Impact
XX

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

14

Competitive Benchmarking (1/5)

SAMPLE

Public Trading Comparables

Company A

Market Capitalization (INR mn)

XX

Share Price (INR)

XX

EV/EBITDA (x)

XX

EV/Revenue (x)

XX

Note: Market Capitalization, Share Price as of 30/12/2014

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

15

SAMPLE

Competitive Benchmarking (X/X)

Key Ratios of Top 3 Companies Operational Basis (FY 2013) (X/X)

Operating Margin

Net Margin

a1

10

a2

c1

c2

0
-5
-10

b2

b1
Company A

Company B

Company C

XX
XX
XX
XX
XX

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

16

Public: Domestic Company Company A(x/x)

Company Information
Corporate Address

XX

Tel No.

XX

Fax No.

XX

Website

XX

Year of
Incorporation

XX

Ticker Symbol

XX

Stock Exchange

XX

SAMPLE
Offices and Centres India

Mumbai
Head Office

Products and Services

Category

Waste
Management
Services

Products/Services

XX

Key People
Name

Designation

XX

XX

XX

XX

XX

XX

XX

XX

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

17

Public: Domestic Company Company A (x/x)

SAMPLE

Financial Snapshot
Total Income

INR mn
300

Net Profit/Loss

INR mn

7.0

8
3.7

200
100

Key Ratios

167.6

172.8

3.0

6.4
220.0

285.1

6
4
2

2011

2012

2013

2014

Financial Summary

Particulars

y-o-y change
(2014-13)

2014

2013

2012

2011

-2.50

5.69%

8.19%

7.48%

8.61%

-1.86

1.05%

2.91%

2.14%

4.19%

-2.23

1.81%

4.04%

2.71%

5.10%

-1.02

0.95%

1.98%

1.35%

2.56%

-0.31

3.92%

4.23%

3.65%

4.43%

-23.46

17.04%

40.50%

Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

-192.48% 24.43%

-0.32

2.74%

3.06%

2.69%

3.46%

-1.67

10.40%

12.07%

11.09%

127.34%

1.86

93.65%

91.79%

92.52%

91.39%

0.32

11.69%

11.38%

10.87%

7.80%

0.28

2.98%

2.70%

2.89%

0.99%

Cost Ratios

The company earned a net profit of INR 3.0 mn in FY 2014, as compared to

net profit of INR 6.4 bn in FY 2013
The company reported total income of INR 285.1 mn in FY 2014, registering
an increase of 30% over FY 2013
The company earned an operating margin of 5.69% in FY 2014, a decrease
of 2.26 percentage points over FY 2013
The company reported debt to equity ratio of 0.50 in FY 2014, an increase
of 20.68% over FY 2013

Key Financial Performance Indicators

Indicators

Value (30/12/2014)

Market Capitalization (INR bn)

Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)

631.53
780.857
0.31
116.22

Operating costs (% of Sales)

Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

20.42%

1.54

1.28

0.95

1.64

-12.23%

0.32

0.37

0.34

0.61

20.68%

0.50

0.42

0.52

0.27

Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

13.77%

0.33

0.29

0.34

0.21

-29.96%

2.13

3.04

2.59

8.71

11.41%

1.64

1.47

1.48

14.78

15.64%

0.43

0.37

0.36

0.40

-12.06%

0.94

1.06

1.45

1.11

-45.60%

2.68

4.93

-25.72

2.84

13.53%

0.54

0.48

0.42

0.48

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover

Improved

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

Decline

18

Public: Domestic Company Company A (x/x)

SAMPLE

Key Business Segments

Key Geographic Segments*

India

e-Waste Management & Recycling

x

100%
80%
60%
40%

The company has earned

revenues from e-waste
Management and Recycling
segment only for the last 4
fiscals

80%
60%
40%

20%

20%

0%

0%

2014

The company has earned

revenues from India only for
the last 4 fiscals

100%

2012

Business Highlights
Description

News

Overview

Current and Pending

Investors

XX

Future Plan

XX

XX
XX
XX
XX

Note: Due to lack of critical data, the graph could not be generated for the year 2014

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

19

Public: Domestic Company Company A SWOT Analysis

(x/x)

SAMPLE

XX

XX

XX

XX

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

20

Private: Domestic Company Company B (x/x)

Company Information

Corporate Address

XX

Tel No.

XX

Fax No.

XX

Website

XX

Year of Incorporation

XX

SAMPLE
Offices and Centres India

Ahmedabad
Head Office

Products and Services

Category

Products/Services

Key People
Water and
Wastewater
Management

XX

Name

Designation

XX

XX

XX

XX

XX

XX

XX

XX

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

21

Private: Domestic Company Company B (x/x)

Shareholders of the Company as on 28.09.2012
Name

No. of Shares held

Doshion Pvt. Ltd.

3,500,000

Veolia Water Solutions &

Technologies

1,500,000

Total

SAMPLE
Ownership Structure

Corporate Bodies

Foreign holdings

30%

5,000,000

70%

Note: AGM as of 28th Sep 2012

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

22

Private: Domestic Company Company B (x/x)

SAMPLE

Financial Snapshot

Key Ratios

Total Income

Particulars

Net Profit/Loss

INR mn

INR mn

1000

27.7

800

20

2.3

600
400
200

40

-25.8
518.5

887.1
456.2

2010

2011

460.9
-49.1
2012

-20
-40
-60

2013

Financial Summary

Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

2011

2010

13.96

3.31%

-10.65%

0.51%

-4.98%

13.77

3.13%

-10.65%

0.51%

-4.98%

13.96

3.31%

-10.65%

0.51%

-4.98%

10.90

2.50%

-8.41%

0.41%

-6.67%

5.27

1.50%

-3.78%

0.28%

-4.39%

-16.05

4.89%

20.94%

0.37%

-4.22%

4.64

1.28%

-3.37%

0.28%

-3.34%

495.15

161.62% -333.53%

16.45%

-142.77%

-13.96

96.69%

110.65%

99.49%

104.98%

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

110.65%

1.54

0.73

4.68

6.09

223.13%

0.41

0.13

0.64

2.02

-37.34%

0.77

1.22

0.47

0.52

-21.13%

0.43

0.55

0.32

0.34

N.A.

N.A.

N.A.

N.A.

N.A.

55.83%

48.81

31.32

32.02

28.69

21.86%

0.39

0.32

0.54

0.67

-28.39%

0.52

0.72

0.57

0.71

-175.09%

1.48

-1.97

0.72

0.85

1.07%

0.80

0.79

0.80

1.34

Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios

The company reported total income of INR 887.1 mn in FY

2013, registering an increase of 92.5% over FY 2012

Leverage Ratios

The company reported debt to equity ratio of 0.77 in FY 2013,

a decrease of 37.34% over FY 2012

2012

Profitability Ratios

The company earned a net profit of INR 27.7 mn in FY 2013, as

compared to net loss of INR 49.1 mn in FY 2012

The company earned an operating margin of 3.31% in FY 2013,

an increase of 13.96 percentage points over FY 2012

y-o-y change
2013
(2013-12)

Current Ratio
Cash Ratio
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover

Improved

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

Decline

23

Private: Domestic Company Company B (x/x)

SAMPLE

Business Highlights
Description

News

Overview

XX

Network

XX

Awards

XX

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

24

Private: Domestic Company Company B SWOT Analysis

(5/5)

SAMPLE

XX

XX

XX

XX

WASTE MANAGEMENT MARKET IN INDIA 2015.PPT

25

Thank you for the attention

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