India’s metal recycling industry has experienced significant growth in recent years, driven by the country's rapid economic development. As the world's second largest producer of crude steel, India manufactured over 140 million tons in 2023, with expectations for continued growth. Despite the impressive production figures, per capita crude steel consumption remains relatively low at just over 90 kilograms, indicating substantial potential for expansion. Amid this dynamic landscape, Simpex Overseas has emerged as a pioneer in the metal recycling sector, contributing to both economic growth and environmental sustainability.
Established in 1994, Simpex Overseas has significantly contributed to this growth by importing scrap and recycled waste from the US and Europe, processing it to support economic growth, and supplying raw materials for other businesses. In 2023, the company imported 56,000 metric tons of scrap, achieving a turnover of over Rs.750 crores. The primary materials imported include Zurik, auto shredded mixed heavies, electric motors, and various other metals from markets in Europe, the UK, US, Australia, and Japan.
Navigating Challenges
Despite the sector's promising outlook, metal recyclers in India face significant challenges.
The presence of unorganized recyclers lacking proper machinery, safety measures, and best practices poses a considerable obstacle. Simpex addresses these issues by adopting advanced technologies and best practices, ensuring superior product quality and maintaining a competitive edge. Alongside this, one of the key strategies employed by Simpex is the integration of automation and advanced machinery. The company has invested in cutting-edge equipment such as color sorting machines that accurately segregate metals based on color, enhancing production efficiency and reducing labor costs. Additionally, local fabricators in Gujarat have developed eddy current machines to remove stainless steel and other impurities from non-ferrous metals, further streamlining the recycling process.
Furthermore, Simpex’s commitment to innovation extends to both hardware and software. The company has imported and locally developed various machines, including copper wire chopping equipment and trommels for material sizing. These advancements have significantly improved production efficiency and reduced operational costs. Also, the company's focus on sustainability is evident in its efforts to minimize environmental impact. Simpex avoids using machines that emit harmful gases, promotes energy conservation through efficient handling processes, and conducts regular tree plantation drives to foster a greener environment.
“Our quality commitment has made us successful. Our products are quality-checked and cleaned multiple times to meet the highest standards. We stand out with our meticulous approach, cutting-edge machinery, and manual intervention. Training programs help employees deliver high quality products, ensuring customer satisfaction and loyalty”, explains Mihir Maheshwari, Director, Simpex Overseas. Additionally, Research and development (R&D) plays a crucial role in Simpex's operations. By continually refining processes and adopting new technologies, the company stays ahead of industry trends. This proactive approach is particularly important for valuable metals like brass and copper, where efficient recovery is essential for profitability. Simpex's investment in R&D ensures that it can offer superior products at competitive prices, maintaining its market leadership.
Looking forward, Simpex has ambitious expansion plans. The company is set to launch two new projects in Sonipat (Haryana), one of which will become operational soon, with the other following within two years. These new facilities will double production capacity, enhancing the company's ability to meet growing demand. Additionally, the company plans to manufacture zinc ingots, further diversifying its product portfolio. Hence, in line with its vision to become a leading global player in nonferrous metal recycling, the company is also exploring the possibility of going public within the next 5-7 years. By continually attending international conventions and fostering relationships with suppliers and customers, the company is well-positioned to achieve its growth objectives and contribute to a sustainable future.
