### **Overview** RACE Eco Chain Limited (RACE) is a leading integrated circular economy platform in India, focused on converting waste into value across a vertically aligned supply chain. The company operates through a scalable, technology-driven, and ESG-compliant model, positioning itself as a key player in formalizing India’s largely unorganized waste management sector. RACE is strategically aligned with rising regulatory demand—especially Extended Producer Responsibility (EPR)—and global sustainability trends. The company is organized into **three core business segments**: 1. **Plastic Packaging Waste Aggregation** 2. **Biomass Fuel (White Coal)** 3. **Recycled Consumer Products (Brand: RESTORE)** With a pan-India presence and a growing portfolio of acquisitions, joint ventures, and digital platforms, RACE is rapidly scaling into a fully traceable, end-to-end circular economy enabler. --- ### **Key Business Segments & Performance (FY25 Highlights)** #### **1. Plastic Waste Aggregation & Recycling** - **FY25 Aggregation Volume**: 95,318 metric tons of plastic waste (25% YoY growth) - **Monthly Average**: ~7,943 MT, making RACE **one of the largest plastic waste aggregators in India** - **Primary Focus**: PET bottles, with plans to expand into other plastic waste streams - **FY25 Revenue**: INR 432.65 crore from waste management segment (48% YoY increase) - **Market Position**: Aggregation volume now used on a Trailing Twelve Months (TTM) basis to assess market share; significant growth attributed to formalization initiatives and operational scaling **Future Goals**: - Scale annual plastic waste aggregation to **100,000 MT in the short term**, and **150,000 MT in the near future** - Target driven by increasing regulatory mandates, including FSSAI and EPR norms --- #### **2. Biomass Fuel (Briquettes & Pellets)** - Supplies biofuels from agricultural waste (rice husk, wheat straw, groundnut shells) as a clean energy alternative - **FY24 Supply Volume**: Over 52,000 MT (more than 50% YoY growth) - **FY24 Revenue**: ~INR 44 crore (13% of total revenue, 51% YoY growth) - **Key Clients**: Reliance, CEAT, PepsiCo, UltraTech Cement, Orient Bell - Supported by government policies promoting **biomass co-firing in thermal power plants** and **CBG blending mandates** --- #### **3. Recycled Consumer Products – “RESTORE” Brand** - **Product Range**: Bags, cushions, table mats, curtains made from recycled PET and natural fibers - **Certifications**: Global Recycle Standard (GRS), SMETA; third-party lab verified - **FY24 Revenue**: INR 2.34 crore → **INR 8.94 crore in FY25 (282% YoY growth)** - **Exports**: ~33% of Restored division revenue; targeting global retailers like Aldi, Lulu, Dollarama, Whole Foods - **Operations**: Two factories, 90+ workers, 70 sewing machines - **Design Philosophy**: Artistic, sustainable consumer goods supporting closed-loop recycling --- ### **Strategic Growth Initiatives (2024–2025)** #### **1. Forward Integration via Acquisitions & Joint Ventures** RACE has strategically moved up the value chain into higher-margin processing and manufacturing: - **Joint Venture with Ganesha Ecosphere (India’s largest PET recycler)**: - **Entity**: Ganesha Recycling Chain Private Limited (incorporated Sept 2024) - **Ownership**: RACE holds 51% controlling stake, Ganesha 49% - **Objective**: Establish **multiple PET bottle washing lines across India** to produce **high-quality recycled PET (rPET) flakes** - **Strategic Impact**: Enables “Bottle-to-Bottle” recycling model; meets rising demand from ESG-conscious brands and regulatory mandates - **Market Outlook**: rPET demand in India projected to exceed **1 million MT by 2031** - **Acquisitions to Expand Infrastructure**: - **Vasundhara Envirogreen (UP)**: Enhances northern footprint, collection reach, and supplier base - **Silverline (Tamil Nadu)**: Strengthens South India presence; supports regional baling and traceability - **India Polymers Pvt. Ltd. (65% stake)**: Sets up **20,000-tonne capacity PET flake plant in Una, Himachal Pradesh** (investment: ₹14.43 crore) - Creates 68 new jobs; low-yield-loss, water-efficient operations - **Exit from Non-Core Assets**: Disinvestment from **Abhay Innovative Recycling** to streamline operations --- ### **Digital Transformation & Technology Integration** #### **The RACE App (Launched 2023–2024, Enhanced 2025)** - **Platform**: Mobile app (Android & iOS), with desktop version underway - **Features**: - Transparent price negotiation - Real-time transaction tracking and logistics coordination - End-to-end traceability for ESG compliance and EPR reporting - Secure payments and digital recordkeeping - **Waste Categories Supported**: PET bottles, non-PET plastics, metal, e-waste, waste paper, biofuel, recycled products - **Future Enhancements**: AI-powered market insights (pricing, regulations, compliance), blockchain for audit-proof traceability **Strategic Role**: Digitizes informal sector, integrates waste dealers, recyclers, and bulk generators into a formal ecosystem. #### **AI & Big Data Platform** - AI-driven price discovery, supplier rating, and demand forecasting - Aims to de-risk supply chain, improve margins, and prevent inefficiencies (hoarding, leakage) --- ### **Pan-India Network & Operational Infrastructure** - **Supplier Network**: 300+ suppliers; over 80+ recycler ties - **Collection Centers**: 35+ active centers; expansions in **Jharkhand, Noida, Bangalore, Gorakhpur** - **Operational Model**: Asset-light franchise-based model with district-level warehouses - **Logistics**: 10–15% of sales; ongoing optimization; strategic investment in bale centers --- ### **ESG & Regulatory Alignment** - **Focus**: Building **ESG-compliant, traceable, and auditable supply chains** - **Key Drivers**: - EPR mandates (Producers, Importers, Brand Owners must recycle 30% by 2025–26, rising to 60% by 2028–29) - CPCB regulations and SEBI ESG norms (from FY25) - **Traceability Goal**: Full visibility from waste origin (supplier) to end recyclers - **Social Impact**: Formalizing informal labor, preventing child labor, ensuring fair wages --- ### **Corporate Restructuring: Planned Demerger** - **Proposal**: Split into **three independent entities** to unlock value and enable focused growth: 1. **Waste Management** – PET & plastic aggregation 2. **Biomass Fuel** – Renewable energy from agricultural waste 3. **Recycled Products** – RESTORE brand consumer goods - **Rationale**: Reflects confidence in standalone scalability, improves capital efficiency, and enhances investor appeal