Thread by @jain_7199rahul

A thread on Antony Waste Handling Cell Limited
(Managing Waste. Delivering Growth)
#AWHCL #antonywaste

Before beginning, let understand the Importance of waste management in today’s world

1. The growing population is causing negative impact on our society. The current model of production & consumption generates a lot of waste that, in many cases, does not get reused or recycled.

2. Unmanaged or poorly managed waste contaminates the environment, harms both animals and humans, and can even affect the economic development of a region. It is quintessential part of a modern urban life.

AWHCL introduction & services offered

AWHCL is one of the top 5 players in the Indian Municipal Solid Waste (MSW) management industry having an established track record of over 2 decades & are present across the entire spectrum of MSW services, including

solid waste collection,
transportation,
processing, and disposal services primarily catering to Indian Municipal Corporations.

AWHCL collects, transports, processes, treats, recycles, and disposes waste, unseen and frequently unacknowledged by the common man and turn it into usable energy. They sweep city roads (mechanically and manually) and try and keep the city clean

It manages waste by providing high-quality integrated waste management services across the entire waste management supply chain.
Their growth is inclusive of People, Planet and Profit by ensuring waste collected is reused, recycled, & converted into usable energy, when possible.

Industry Overview

India’s waste management industry is in a growth phase & gradually gaining global attention. With the concept of circular economy gaining prominence, waste management has become one of the crucial factors for achieving the same.

At present, out of the total waste generated, only 30-35% gets scientifically processed.
This gap can be huge opportunity to ensure growth and profitability for the Company.

Increase in Waste generation: Urbanization is one of the primary factors driving the MSW generation in India. Improving lifestyles and increasing disposable incomes have paved the way for consumerism and contributed to growth in garbage.

Proper waste management is the key to smart cities’ planning. Considering all the above, MSW generation, in India, is anticipated to witness a CAGR of 8.9% (2020-25) to reach 115 million TPA by 2024-25.

Doubling Industry Size: India’s open dumping practice is exceptionally higher compared to other nations. From 77% of waste dumped openly, only 18% is composted and 5% is recycled.
MSW mgt market size is estmd to be 5,000 Crore in 19-20 & expected to reach 9,800 Crore by 24-25.

Engagement with Private Players: The municipal corporations face several challenges right from staffing, technology,& vehicle maintenance. Hence the Indian Govt has been encouraging private participation for better efficiency.

The public private partnerships encompass street sweeping, collection and transportation while also extending across the value chain processing and treatment, WTE and scientific waste disposal.

Swachh Bharat Mission: Emphasis is on solid waste collection, source segregation and processing. Swachh Bharat Mission and Smart City Mission, coupled with Govt subsidies for projects such as WTE, have been the key driving factors in increasing private-sector participation.

AWHCL Key products & Services
•Collection &Transportation (C&T)
•MSW Processing
•Mechanised Sweeping Projects
•Scrap/Recyclables Sales

Resources:
•Scalable infrastructure
•Operational and technical expertise
•Committed workforce

Revenue Recognition
Municipal Solid Waste (MSW) Collection &Transportation – 64%
Municipal Solid Waste (MSW) Processing – 28%
Mechanised Sweeping and Others – 8%

Attached is the value chain process & Key products & services

AWHCL Facts
It has processed cumulative waste of 8.02 million metric tons since 2009.
Presence in 9 states in India
Largest waste processing plant in Asia (Kanjurmarg landfill project)
Currently processing 60% of waste generated in Mumbai
It has 1,155 owned vehicle fleet

Some Key Pointers:

1. AWHCL ability to identify, win and execute new municipal contracts has been a key factor for growth. Waste Management Solutions come under essential services purview and hence is accorded priority status when it comes to budgetary allocation.

2. Bidding process has been made stringent municipal corporations. Operators only with proven track record & execution capabilities are invited to bid for such projects, thus creating strong entry barriers.

AWHCL established track record of more than two decades, the scale of operations, diversified geographic presence, vertical integration enables to qualify for most of the tenders which normally demand work experience commensurate with the project at hand.

3. All the contracts signed by Co come with pass-through for cost escalations. Contracts have clauses which ensure any change in cost wrt labour and fuel gets calibrated in tipping fees & provides scope for a stable margin outlook for the operator & thus reducing financial risk.

4. Waste mgmt leverages technology aimed at efficient methods of waste collection & its disposal. In C&T segment, use of hydraulic-based mobile compacting units/static compactors enables efficient waste collection system, ensuring reduced no of trips & minimal manual handling.

5. Waste-to-Energy (WTE) is an increasingly pursued medium for waste disposal across the globe. With increasing energy demand and governments taking various initiatives, the Waste-to-Energy market is likely to witness more PPP-based projects.

The Standing Committee on Energy, Ministry of New and Renewable Energy estimates India’s Waste-to Energy potential to increase to 1,075 MW and 2,780 MW by 2031 and 2050, respectively.

6. AWHCL’s step-down subsidiary, Antony Lara Renewables Energy Private Limited (ALREPL), was awarded a contract in 2018-19 for setting up and operating a 14 MW WTE plant by Pimpri Chinchwad Municipal Corporation (PCMC).

This plant would be constructed with an investment of Rs 240 Crore. It includes the segregation and processing of municipal waste. Thereby producing compost from biodegradable waste and generating power

Opportunities Outlook:
1. Rising population & changing consumption patterns
2. Rapid urbanisation
3. Increasing pressure on municipal corporations
4. Improved access to modern waste management method
5. Increased participation from private players
6. Highly underpenetrated market

Planning Commission Report (2014) reveals that 377 million people residing in urban area generate 62 million tons of MSW per annum and it is projected that by 2031 these urban centres will generate 165 million tons of waste annually and by 2050 it could reach 436 million tons.

According to CPCB reports, during the last decade, solid waste generation has increased 2.44 times. The fact is, no city in India can claim 100% segregation of waste at dwelling unit level.

The scope for a modernized way of collecting waste using garbage compactors, processing and treating the waste and their safe disposal is significant.

Risk Factors:
Operation Risk: AWHCL operates in a highly regulated industry and changing standards or regulatory compliance issues could have an adverse impact.

Market Competition: The MSW sector is a mix of organized and unorganized players.
Financial Risk: AWHCL is exposed primarily to fluctuations in interest rate, credit quality & liquidity management which may adversely impact the fair value of its financial assets & liabilities.

Human Resources Risk: Operations carry inherent health & safety risks to employees.
Information Technology Risk/Cyber Security Risk: Cyberattacks can impact business operations, machinery & human assets, also resulting in legal and regulatory liabilities.

Some Key Metrics, Financial Performance, KMP & Subsidiaries details attached

Trends & Waste Management Overview, Initiatives & Environment

Source: Extracts from Annual Report

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