Rosmerta Technologies, India's leading automobile technology and automation firm is expanding its vehicle scrappage business to 200 million tons per annuum, from 20 mtpa.
The company operates a state-of-the-art vehicle scrapping facility in Manesar, with a capacity of processing 30,000 vehicles annually. After the capacity addition, they will be able to process up to 3 lakh vehicles annually.
This will entail an investment of INR 200 crores spread over the next three years for the plant and working capital (excluding land).
Few states have begun to adopt these measures and released notifications regarding such Automotive Recycling Facilities. Rosmerta is ready to set up these facilities when regulatory push as well as subsidization policy by automotive OEMs come into play. A lead time of 6 months is required to set up any new plant.
The Minister for Road, Transport & Highways laid out the benefits of the vehicle scrappage policy during the 63rd SIAM convention held on 12 September in the capital. Nitin Gadkari mentioned that the output from scrapped vehicle materials saves about 33% on raw material costs and will bring down reliance on imported metals such as Aluminium and copper, as well as rubber. This in turn will complement the drive for circular economy.
It is pertinent to note that India is ranked fourth and sixth largest manufacturer of passenger and commercial vehicles respectively, and imports US$ 34.7 billion in metals each year.
Highlighting the financial benefits of the policy, the minister further said that the vehicle scrappage programme will generate an additional Rs 40,000 crore in GST revenue for the government. Furthering the initiative, the Central Government has provided a Rs 2,000 crore incentive to state governments via the Special Assistance to States for Capital Investment 2022-23. The Minister also urged the auto OEM association and OEMs to make use of the policy and contribute through providing subsidies in exchange of old vehicles for new ones.
Mr. Kartick Nagpal, President at Rosmerta Technologies said, "We take pride in sharing our significant participation to the government's goal through this stride toward India's green ambitious Vehicle Scrappage Policy. With this move, we will be able to contribute in the circular economy by helping recycle 300,000 vehicles each year, across the country. At Rosmerta we believe in leading through impactful change through technology and increase the magnitude of safety, security and environmental consciousness. With this regard, we plan on investing INR 200 crores across India to leverage this situation and contribute to circular economy".
The National Vehicle Scrappage Policy was launched by the Prime Minister during August 2021.
While the Government has financially incentivised scrapping old vehicles and replacing them with new ones, over five million LMVs aged over 50 years, plying unchecked, highlighting the dire need for stringent policy push.
FY23 projected Group revenues – INR 900 CR
About Rosmerta:
Rosmerta Technologies Limited stands as a beacon of innovation in India's mobility solutions landscape. With a steadfast commitment to excellence and a rich history of groundbreaking advancements, Rosmerta has become a driving force in automotive technology. Rooted in a vision to create safer, smarter, and more connected Indian roads, the company is at the forefront of the Surakshit Safar initiative, dedicated to reducing road accidents and fatalities by 50 percent by 2024.
Rosmerta's offerings is its dominant position in the Indian High-Security Registration Plate (HSRP) Industry, boasting a remarkable 50% market share and leading in sustainable margins. Notably, it is the world's second-largest and India's foremost HSRP manufacturer, consistently excelling in government tenders.
Beyond HSRPs, Rosmerta excels in various other verticals, including Intelligent Transport Management Systems, Automated Testing Stations, Vehicle Scrapping Facilities, IOT/M2M Connectivity Solutions, Automated Driving Testing Tracks, and Smart Card-based RC & DL Solutions. These comprehensive solutions underline Rosmerta's dedication to transforming India's roads through cutting-edge technology.
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