Waste to value: The circular solution to e-waste

India's e-waste problem is shocking. But Hindalco's new venture is set to disrupt the game, promising an environmentally friendly and economically viable solution

While our electronic devices bring convenience and connectivity to our everyday lives, this rapid pace of technological advancement has led to a less visible problem – electronic waste, or e-waste. It's one of the fastest-growing sources of waste in the world, with India ranking as the third-largest producer globally, contributing nearly 2 million tonnes annually. This looming crisis not only strains our environment but poses severe health risks to those involved in informal recycling processes.

For context, India's growing consumption of electronic goods includes over 17 million TV sets, 148 million smartphones, 14 million refrigerators, 19 million audio devices, and 6.5 million washing machines sold annually.

Another concerning trend is that India has unwittingly become a dumping ground for e-waste from developed nations. International companies exploit legal loopholes to “export” their e-waste to India, as it is cheaper and often less regulated than proper disposal in their home countries. These underhanded practices contribute significantly to the country's mounting e-waste crisis.

The irony is that within this waste stream lies a treasure trove of valuable metals like copper, gold, silver, and more. These precious materials are the lifeblood of the electronics industry, and their recovery is critical.

A recent report (Pathways to Circular Economy in Indian Electronics Sector) by India Cellular and Electronics Association noted that there are six circular business models in the electronics sector, namely, Circular Design, Product-as-a-Service, Repair, Resell, Refurbishment and Recycle. According to its estimate, the projected market size of these six in business-as-usual scenario (based on existing commitments and targets) in 2035 stands at $13bn whereas the total addressable market, if right public and private sector actions were to be undertaken, is as high as $20bn.

The ‘informal’ conundrum

Compounding the problem is the predominantly informal nature of e-waste handling in India. Approximately 85-90% of India's e-waste is managed by the unorganised or informal sector, primarily consisting of scrap dealers. While they play a crucial role in recycling, their methods often involve environmentally degradative processes. Burning cables to recover copper and discarding unsalvageable materials in open areas have resulted in heavy metal contamination of both land and water, posing severe health risks to the workers and damage to the environment. Only 22% of collected WEEE (Waste Electrical and Electronic Equipment) is recycled by the formal sector.

Hindalco's vision: A game-changing solution

Keenly aware of the severity of India's e-waste problem and the pressing need for a sustainable solution, Hindalco is investing Rs 2,000 crore to establish a state-of-the-art copper and e-waste recycling facility, the first of its kind in India.

The new facility is poised to transform the e-waste landscape in India. Importantly, it will introduce advanced e-waste recycling technology to the country, reducing the need for exports, resulting in lower costs. As a result, a significant volume of e-waste, rich in valuable metals, can be processed and recycled domestically, creating an economically viable circular system.

The impact extends far beyond economic benefits. The new facility will also address the severe environmental and health concerns related to e-waste handling. By adopting environmentally friendly recycling practices, the facility will significantly reduce the pollution and harm currently associated with e-waste disposal.

The investment is in line with Aditya Birla Group, its metal flagship – Hindalco’s, commitment towards circular economy.

At Hindalco, 90% of waste is utilised across its sites in India. In fiscal 2023, it utilised over 100% of fly ash, and the bauxite residue from three of its four alumina refineries. It also achieved SUP-free certifications at 14 Indian sites and is working towards water positivity in all mines by 2025.

Its subsidiary, Novelis, recycled over 2.2 million tonnes of aluminium scrap and increased the recycled content in its products to 61% (up from 57 per cent in FY22). This achievement firmly sets Novelis apart from its peers with a recycled content rate more than double its nearest competitor.

In fact, According to AL Circle’s recently released report “Global Aluminium Industry: Key Trends to 2030,” the world recycled aluminium usage stood at 27.1 million tonnes in 2022 and is expected to grow to record more than 28 million tonnes in 2023. Of the top five companies recognised as the global leaders in aluminium recycling, Novelis held the top spot as the world’s largest aluminium recycler.

A step towards India's circular economy

Beyond addressing the e-waste crisis, Hindalco’s investment contributes to the broader vision of a circular economy in India. By making it cost-effective to recycle e-waste domestically, India can reduce its dependence on imports of precious metals and create a sustainable cycle of production and recycling, ultimately conserving valuable resources.

Hindalco's pioneering efforts align with Aditya Birla Group's commitment to sustainability, innovation, and corporate responsibility. As part of one of India’s leading conglomerates, Hindalco's mission to manage e-waste responsibly showcases the role that corporate giants can play in driving positive change.