By Dominick Rodrigues
Mumbai: Antony Waste Handling Cell Limited, the 2nd largest national player in the Indian MSW management industry (estimated at Rs 500 billion for FY2020), have launched their Initial Public Offering (IPO) of Equity Shares priced at between Rs 313 and Rs 315 — aggregating Rs 300 crore— which will open on December 21 and close on December 23 while being listed on the BSE and NSE.
The issue proceeds include investment through its subsidiaries in the Pimpri-Chinchwad Corporation waste-to-energy project, debt repayment and general corporate purposes.
Describing the size of the global waste management industry at estimated Rs 23 trillion, Jose Jacob, CMD, said India’s waste industry was estimated to be Rs 0.05 trillion (FY20) with emerging areas of growth including ‘biomethanation’ (anaerobic fermentation of biodegradable waste). “We do door-to-door collection, processing,, composting, recycling, shredding and compressing, waste-to-energy,” he said, adding “Our ongoing projects include MSW C&T projects, four mechanized sweeping projects and two MSW processing projects.”
Replying to questions, Jacob said “The Kanjurmarg waste processing site in Mumbai – which is one of the largest single waste processing location in Asia — produces solid waste of 5000 tonnes per day that is transformed into compost and sold to user companies. About 60% of our revenue comes from waste collection/transportation through 1,200 specialized vehicles — of which 98% vehicles are having GPS systems.”
“In 2019-20, our company won waste-handling contracts in Varanasi, Nagpur, Noida,” he said while highlighting the company’s journey and transformation from 2001 into the present private/public partnership through the waste collection, transportation and processing with focus on 100% solution for municipal corporations, who sought to outsource solid waste handling on 5-10 years contracts.
“Our strategy is to continue bidding in new states to tap the huge opportunity in this waste industry sector that is witnessing privatization occurring in the municipal corporation areas. Our Revenue was Rs 2,151 million (1HFY21), Net Profit Rs 291 million (1HFY21) and Ebitda Rs 592 million (1HFY21). Despite Covid-19 scenario being testing time, we had Rs 215 crore revenue.”
However the pandemic witnessed the H1 period business decreasing drastically from hotels, restaurants etc., thus affecting margins through salaries, incentives, PPE kits costs, fuel price increase, Jacob said while detailing the waste processing contract at 20-25 years and waste collection at five years.
“We only choose to bid in municipal corporations that are cash-rich and doing not less than 150 tonnes waste collection per day. The municipal waste industry generates Rs 5,000 crores and is expected to rise to Rs 10,000 crores over the years,” he said while adding “We are focusing on ideas and tech technology including recently-brought in garbage compacters, and we have a strong track record of project execution and a diversified business model. We are into the essential services sector and hence have no problems in collecting billing payments.”
The company is among the key players in landfill construction and operations, while having designed and operating one of the largest single location waste processing plants in Asia with capacity of handling upto 6,500 tonnes of MSW per day. It has undertaken over 25 projects of which 18 were ongoing (as on November 15, 2020) including projects for the municipalities of Municipal Corporation of Greater Mumbai, Navi Mumbai, Thane, Pimpri-Chinchwad, North Delhi, Mangaluru, New Okhla Industrial Development Authority, Nagpur and The Greater Noida Industrial Development Authority.
Equirius Capital Private Limited and IIFL Securities Limited are the Book running Lead Managers to the issue.
