Nippon Magnetic picks up strategic stake in Eco Recycling

Eco Recycling Limited (Ecoreco) (BSE: 530643), India's pioneering and only publicly traded company exclusively working in the e-waste recycling segment, today, announced that Nippon Magnetic Dressing Co. Ltd (NMD), Japan's most prominent metal pre-processor, has extended consent to invest in the equity capital of the company. NMD's existing relationships with several producers of electronic and electrical equipment in Japan, will help Ecoreco approach these producers in India to provide them recycling services.

 

This is probably going to be the first and only strategic investment in any e-waste recycling company in India and that too on the immediate implementation of E-waste (Management & Handling) Rules, 2011 to regulate the e-waste industry. BK Soni, Chairman, Ecoreco Recycling Limited says, "This is the first strategic investment in any e-waste recycling facility in the Country (financial investments are already in place with another recycler). It signifies that the e-waste recycling market is now poised to take off in India."

 

NMD's request to invest in Ecoreco has been approved by the Board of Directors' of Ecoreco on 30th July, 2012 and the allotment of 800,000preferential shares at Rs. 40 per share will be submitted before the general body in the ensuing Annual General Meeting scheduled to be held on 30th August, 2012. Market price for Ecoreco's share on July 30, 2012 at end of trading was Rs. 38.00.

 

Ecoreco is very pleased to extend its heartiest thanks to IRG Systems South Asia Pvt Ltd. for their valuable contribution in forging the tie up of the above companies. "We have built a partnership with Ecoreco and want the E-waste recycling business in India to be successful together by this strategic investment," says Mr.K Baba, General Manager Treasury, Nippon Magnetic Dressing Co. Ltd."