I was studying Tata Group’s vehicle scrapping biz. It opened 5 facilities with the capacity to scrap 70k vehicles a year, within just 13 months from Feb '23.
But, now with the launch of its 6th such facility, it has completely changed the approach. And you won’t find much about this in the media 😅😅
And this post is about whatever I could learn about the business.
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Called Re.Wi.Re, Tata Motors opened its first-ever vehicle scrapping centre in Jaipur in Feb last year (2023).
-> It could scrap 15k end-of-life vehicles a year, including buses, commercial vehicles, cars and more
-> And, the developer and operator is the company’s Rajasthan-based dealer Ganganagar Vaahan Udyog Pvt Ltd
The game was about extracting all reusable copper, steel, aluminium and other parts and materials.
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Of this, much was to be re-used by Tata Motors, while steel scrapped here was to be forwarded to Tata Steel.
Why? Cuz, Tata Steel is betting big on scrap-based steel-making. And it is setting up a big such plant in Punjab’s Ludhiana.
Here, Tata Steel would produce greener and cheaper fresh new steel.
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And with the Jaipur Re.We.Re center live:
-> In July ’23 Tata Motors opened another one with 10k vehicle capacity in Bhubaneshwar, with dealer Empreo Premium
-> In Sep ’23, one more with a capacity of 15k vehicles in Surat with dealer Shree Ambica Auto
-> Then one more in Nov ’23, with Chandigarh-based Dada group. This one had a capacity of 12k vehicles
And then one more with 18k vehicle capacity in Mar ’24, near Delhi, with another dealer Johar Motors.
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But then, post-March, no new such facility was launched for months, until yday.
Yday, in Pune, Tata Motors announced the launch of 6th and largest Re.Wi.Re facility which can process 21k vehicles a year.
But interestingly, this one saw no dealer being involved. Instead, Tata Motors roped in the group’s global trading and distribution arm, Tata International.
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Why is that interesting?
Tata International is majorly all about trading of metals, minerals & agri commodities.
It is also a major exporter of leather, with customers like Jeep, Honda, Zara, H&M, Mars and Spencer and more.
Thus, it’s into a lot of different businesses. But, vehicle scrapping? That’s something totally new.
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The bet is that, as Modi Govt’s policy push for vehicles that are 15yrs or older gains traction, the Tata group’s vehicle scrappage business could become a big money spinner.
And with Tata Sons owned, unlisted Tata International being the operator, much of the value will be accrued to the promoter group.
Nice, right! Did you know this?
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Jayant
I’m curious, what is the consumption of supercritical carbon dioxide required to devulcanize one ton of waste tires? Does this mean that for every ton of supercritical carbon dioxide used, it will eventually evaporate into one ton of regular CO₂ and be released into the atmosphere? BTW, Based on the sticky residue on those rollers, your acetone extractable content is definitely high, indicating an issue with product quality.