Reclaim and reuse, Jain Resource Recycling shows the way

Jain Resource Recycling Limited (JRRL) is led by Kamlesh Jain, who has over 3 decades of experience in the metal industry. The company began as a partnership firm under the name of Jain Metal Rolling Mills in 1953. It is now the largest and fastest-growing non-ferrous metal recycling business in terms of revenue for Fiscal 2024, Fiscal 2023, and Fiscal 2022 (Source: CRISIL). JRRL has an extensive global footprint and state-of-the-art facilities.

“India’s non-ferrous recycling industry is rapidly evolving and witnessing strong growth driven by industrial demand, environmental regulations, and the government’s emphasis on a circular economy. Within this landscape, lead recycling continues to grow on the back of demand from batteries, while copper and aluminium recycling are gaining importance due to cost, energy, and environmental advantages,” explains Kamlesh Jain, CMD, Jain Resource Recycling Limited.

JRRL is one of India’s largest recyclers of non-ferrous metals and alloys with a diverse product portfolio of lead and lead alloy ingots, copper and copper ingots, and aluminium and aluminium alloys, catering to both domestic and international customers. “With strategically located recycling facilities and a focus on operational efficiency, the company continues to strengthen its role in meeting industrial demand through sustainable recycling practices,” says Mayank Pareek, who serves as Joint MD on the board and is a qualified chartered accountant with over a decade of experience in the metal industry.

The company’s lead ingot is registered as a brand by the London Metal Exchange (LME). This provides the distinct advantage of access to a broader customer base by offering products compliant with international quality standards, along with the benefit of LME reference pricing for its products in global markets. In addition, the company caters to customers in various industries including lead-acid batteries, electrical and electronics, pigments, and automotive.

The company conducts its operations at three recycling facilities in India, located at SIPCOT Industrial Estate, Gummidipoondi, Chennai, with a production capacity of 136,082 MTPA. Spread across nearly 26.94 acres of leased land, these facilities provide the benefits of centralised and integrated operations. “The cross-utilisation of by-products between the facilities has enabled efficient resource management and reduced wastage,” says Jain, adding, “the company’s choice of location has also been strategic. Chennai’s proximity to ports provides an efficient gateway for both imports of raw scrap and exports of finished products, lowering logistics costs.”

The company caters to a diverse set of industries, including lead-acid batteries, electrical and electronics, and automotive. Its clientele includes Vedanta Limited-Sterlite Copper, Luminous Power Technologies, and Yash Resources Recycling Limited, as well as global customers including Mitsubishi Corporation, Japan and Nissan Trading Co.

Exports growth

Pareek adds: “Over the years, the company has developed a deep sourcing network across the globe, sourcing recyclable materials from retail scrap yards in those countries. Our company’s strong relationships with its raw material suppliers have enabled it to obtain good-quality metal scraps at competitive rates within the prescribed timelines, which is beneficial for our business operations.” This provides the company with better insights into raw material markets and helps in managing its supply chain.

Exports are a key contributor to the company’s growth. Revenues from exports grew at a CAGR of 7.87 per cent between Fiscal 2022 and Fiscal 2024. In Fiscal 2024, export revenues stood at Rs23,960.22 million, representing 54.11 per cent of total revenues.

The company has showcased a consistent track record of growth and profitability. Revenues have increased steadily, from Rs2,849.59 crore in Fiscal 2022 to Rs4,428.41 crore in Fiscal 2024. During the same period, EBITDA rose from Rs116.43 crore to Rs227.21 crore, reflecting a CAGR of 39.69 per cent. Profit after tax more than doubled, from Rs86.8 crore in Fiscal 2022 to Rs163.82 crore in Fiscal 2024.

The company aims to expand its product offerings by moving into copper cathode, the purest form of copper, and wire rod manufacturing, thereby increasing its ability to cater to a more diversified consumer base. Under this project, copper cathode will be produced from recycled copper materials by removing fringe metallic impurities through electrolytic refining and subsequently converting the copper cathode into high-quality copper wire rod. The feedstock for the copper cathodes will be the finished products from the company’s recycling facilities, making the copper cathode and copper wire rod project a forward integration initiative for the Jain Metal Group.

Jain adds: “This project is proposed to be implemented in a phased manner, with the capital expenditure to be met out of internal accruals. We believe that such a forward integration strategy will not only strengthen our position in the copper recycling value chain but also cater to the growing demand within the wire industry.”

He believes that the forward integration project of manufacturing copper cathodes and copper wire rods, along with state-of-the-art facilities, will further consolidate the company’s position in the recycling and metal manufacturing industry. The project aligns with JRRL’s vision of diversifying its product portfolio and serving the growing demand for high-quality copper products.

ESG principles

The non-ferrous metals recycled by the company are critical to industries such as renewable energy, electric vehicles, electronics, and construction. Recycling these metals instead of mining reduces environmental impact and conserves natural resources. Pareek adds: “The ability of the company to reclaim and reuse valuable metals reduces energy consumption and greenhouse gas emissions, aligning the company with international climate goals.”

The operations of the company are grounded in Environmental, Social, and Governance (ESG) sustainability principles. On the environmental front, the company continues to invest in technologies and systems that optimise recycling processes and minimise waste. Through advanced sorting systems and energy-efficient operations, the company has significantly reduced its environmental footprint.

"On the social dimension of ESG, the company emphasises creating a positive impact within the communities where it operates," says Jain. Initiatives include collaboration with the Rotary Club of T Nagar Charitable Trust in Chennai for the renovation of government and charitable schools. Beyond business, the company provides sustainable employment opportunities while prioritising safe working conditions and fair labour practices. By offering sustainable career paths and fostering inclusivity in the workplace, Jain Resource Recycling contributes to broadening the societal goals of equity and long-term economic well-being.

JRRL enters its next chapter with the advantage of scale, diversification, and global credibility. Its forward integration into copper cathode and wire rod manufacturing, combined with a focus on sustainability, positions it at the intersection of growth and responsibility.