Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

At least four auto shred plants with a total capacity of 850,000mt are being set up in northern India to capture an auto steel scrap market worth Rs10 billion in India.


Blal Steel Shredding is Punjab’s first auto shredder and has an annual capacity of 200,000mt. The plant went live in August and is currently taking in end-of-life vehicles being imported from New Zealand. 


Prashant Rishi, manager, Blal Steel Shredding, said that imports are based on the fact that current car scrappage is nowhere near where it needs for the plant to be able to reach its monthly production target. 


CERO, a joint venture between Mahindra Accelo and MSTC, will have an annual shredding capacity of 0.1mn mt with a Rs1.2 billion investment. The plant will be setup in Noida.


A Tata Steel with Aarti Green Tech shredder in Rohtak, Haryana, is the third major player in the space, with a capacity of 0.5mn mt pa. At least $7mn will be invested in the venture. Metso Metal Recycling from Texas, US, is providing the shredder to Tata Steel.


These shredders will hope to secure crushed car bodes as feedstock from Mayapuri and also a growing auto dismantling industry.

Maruti Suzuki and Toyota Tsusho announced a dismantling venture last month. The entity, Maruti Suzuki India Private Limited (MSTI), will have a capacity to dismantle 24,000 vehicles per year and will be set up in Noida, Uttar Pradesh, by 2020-21.

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