About GEM Enviro Management Limited

GEM Enviro Management Limited ("GEM") is a forward-thinking company dedicated to addressing one of the most pressing environmental challenges of India: plastic waste management and the implementation of Extended Producer Responsibility (EPR) programs. GEM Enviro is specialising in collection and recycling of packaging waste and promotion of recycled green products. They are a Waste Management Agency (WMA) providing sustainability services to their clients and thereby addressing the profound environmental issues posed by waste. They provide a range of services, including EPR (Extended Producer Responsibility) compliance, Scrap Management, ESG (Environment, Social and Governance) Consulting, BRSR (Business Responsibility and Sustainability Reporting) Reporting, Project Advisory and Management of Plastic Credits, Sales and Marketing of recycled products, and Eco-Awareness Campaigns, adopting a closed-loop model that significantly reduces the environmental impact and also deals in plastics scraps trading.

With a diverse portfolio of 100+ clients, GEM Enviro Management has established strong relationships across various industries, including Food and Beverages (F&B), Fast Moving Consumable Goods (FMCG), Cement, Fertilizers, Packaging, Consumer Goods and many more. Few of GEM’s prominent clients are companies such as Bengal Beverages Private Limited (Bottler of THE COCA-COLA COMPANY), Varun Beverages Limited, National Fertilizers Limited, PepsiCo India Holdings Private Limited, Krishak Bharati Cooperative Limited (KRIBHCO) etc. GEM, a key player in India's Extended Producer Responsibility (EPR) sphere for plastic waste, provided more than 300,000 MT of EPR credits to its customers in the financial year 2022-23. It works with more than 25 plastic waste processors for the same.

GEM’s clients include leading multinational and Indian companies such as Coca Cola, SC Johnson, Varun Beverages, NFL, IFFCO, Mamaearth, Himalaya, Herbalife, Orient Electric among others. GEM has pan Indian presence with vast network of waste collectors and recyclers. Till date it has prevented >1 Million MT/Year of recyclable plastic waste and >100,000 MT of MLP (Multi Layered Plastic) waste. GEM conducts various awareness programs for schools, colleges, and communities to sensitize and educate about proper disposal of waste and need of recycling and also conducts various IEC (Information, Education and Communication) activities for informal sector workers in association with its clients.

INDIA’S PLASTIC INDUSTRY

The Indian plastic industry is one of the leading sectors in the country’s economy. The history of the plastic industry in India dates back to 1957 with the production of polystyrene. Since then, the industry has made substantial progress and has grown rapidly. The industry is present across the country and has more than 2,000 exporters. It employs more than 4 million people in the country and constitutes 30,000 processing units; among these, 85-90% belong to small and medium enterprises. India manufactures various products such as plastics and linoleum, houseware products, cordage, fishnets, floor coverings, medical items, packaging items, plastic films, pipes, raw materials, etc. The country majorly exports plastic raw materials, films, sheets, woven sacks, fabrics, and tarpaulin. The Government of India intends to take the plastic industry from a current level of Rs. 3 lakh crore (US$ 37.8 billion) of economic activity to Rs. 10 lakh crore (US$ 126 billion) in 4-5 years.

In FY23, India’s plastic exports stood at US$ 11.96 billion. During this time period, the exports of writing instruments and stationery, medical items, plastic pipes and fittings increased by 22.7%, 18.0%, and 0.5% over the same time last year, respectively.

INDIA’S PLASTIC RECYCLING INDUSTRY

India has a population of more than 1.4 billion and generates 26,000 tonnes of plastic waste – every day. This is the equivalent of approximately 26,000 small cars. India produces 3.4 million tonnes of plastic waste in a year and only 30% of it is recycled. The India Plastic Recycling market stood at approximately 5700 thousand tonnes in FY 2023 and is likely to grow at a steady CAGR of 5.84% in the forecast period by FY 20230. The plastic recycling industry in India is rapidly growing owing to the rise in the number of small-scale plants in the country and the increasing focus of non-governmental entities on the secondary use economy.

Plastics are generally categorized in two types:
A. Thermoplastics
- Thermoplastics or Thermo-softening plastics are the plastics which soften on heating and can be molded into desired shape such as ET, HDPE, LDPE, PP, PVC, PS etc.

B. Thermosets
- Thermoset or thermosetting plastics strengthen on heating, but cannot be remolded or recycled such as Sheet Molding Compounds (SMC), Fiber Reinforced Plastic (FRP), Bakelite etc. are the examples of the same.

PLASTIC WASTE
Plastic waste (PW) is one of the most rapid-growing waste streams in municipal solid waste all over the world. India has become a global player in the plastic value chain. Despite low consumption, domestic generation and imports create a significant burden on the overall waste management system, which requires in-depth understanding of the scenario and pathways that can mitigate the crisis.

POSITIVE OUTLOOK OF RECYCLED PLASTIC WASTE MANAGEMENT IN INDIA
The positive outlook for the recycled plastic waste management market in India is underlined by a confluence of factors that signal robust growth and sustainability in the sector. With increasing awareness about environmental conservation and a growing commitment to sustainable practices, the demand for extended producer responsibility (EPR) services in recycled plastic waste management is poised to witness a substantial uptick. Government initiatives and stringent regulations mandating responsible disposal of plastic waste have not only spurred the adoption of EPR services but have also created a conducive environment for market expansion.

Additionally, the rising consumer consciousness towards eco-friendly products and packaging amplifies the demand for recycled plastics, incentivizing companies to invest in EPR services. The untapped potential of the market, coupled with the commitment of stakeholders towards a greener future, positions the recycled plastic waste management industry as a key player in India's sustainable development narrative, promising investors an opportunity to participate in a sector that aligns with both environmental responsibility and economic growth.

GEM ENVIRO MANAGEMENT LIMITED STRENGTHS & STRATEGIES

1. GEM has in depth understanding of regulatory landscape for EPR.
2. GEM has built in processes and workforce to quickly learn and adapt to the EPR requirements of other sectors.
3. GEM is an emerging player in plastic EPR and has strong brand recall.
4. GEM has relationship with the stakeholders (recyclers and waste aggregators) in the plastic and other EPR value chain.
5. Diversification and Comprehensive Sustainability Services
6. Broaden presence in current markets and explore entry into new geographical markets
7. Promotion of Environmental Awareness and Acceptance of Recycled Merchandise
8. Prominent Leadership and Strong Industry Relationships

GEM ENVIRO MANAGEMENT LIMITED RISK FACTORS & CONCERNS

1. Company's current assets and net worth are significantly influenced by trade receivables.
2. As a component of theirr expansion strategy, they plan to diversify their business activities by venturing into EPR compliances and offering consultancy services for the management of E-waste, Tire, and Battery Waste but there's no guarantee profitability.
3. They operate in highly regulated sector.
4. The company function within a competitive landscape.
5. Their corporate records have encountered occasional delays in submitting statutory forms to the Registrar of Companies (RoC).
6. If they are unable to expand their business rapidly to keep pace with the increasing demands of their customers, then it can affect their operational outcomes. 
7. The company may require additional funding to support their growth strategies.