Jain Resource Recycling IPO

Jain Resource Recycling Limited IPO Strengths

Track Record of Profitability and Consistent Financial Performance in an Industry with Significant Entry Barriers

Jain Resource Recycling Limited, part of the Jain Metal Group, has demonstrated a robust track record of profitability and financial consistency over seven decades. With strong revenue growth, efficient operations, conservative debt policy, and industry leadership, the Company thrives in a sector defined by high regulatory and operational entry barriers.

Strategically Located Recycling Facilities with Capabilities to Handle Multiple Product Lines

Jain Resource Recycling Limited operates three strategically located recycling facilities in Gummidipoondi, Chennai, spread across 26.94 acres of leased land. These integrated units enable cross-facility use of by-products, efficient logistics via proximity to key ports, and cost-effective operations across specialised metal product lines—lead, copper, and aluminium—backed by advanced technology, robust infrastructure, and global market reach.

Strong Customer Base with Global Footprint and Deep Sourcing Capabilities

Jain Resource Recycling Limited has a robust international presence, exporting to over 20 countries including Singapore, China, Japan, and South Korea. With 342 customers in FY24 and 85% revenue from repeat clients, the company maintains strong customer retention. Its global sourcing network spans 120+ countries, ensuring efficient procurement and operational sustainability.

Application of Hedging Mechanism for Commodity Price Risk Protection for Products

Jain Resource Recycling Limited actively mitigates commodity price risks by employing hedging strategies through futures contracts on the London Metal Exchange (LME). This metals-focused approach safeguards profitability against base metal price volatility, ensuring cost coverage, financial stability, and operational flexibility while enhancing global competitiveness and product marketability.

Experienced Leadership and Skilled Industry Professionals Driving Growth

Jain Resource Recycling Limited is guided by an experienced leadership team, including Kamlesh Jain, Mayank Pareek, and Hemant Shantilal Jain, supported by qualified professionals across key business functions. Their deep industry knowledge and strategic expertise strengthen operations, enabling sustainable growth and positioning the company for future market opportunities.

More About Jain Resource Recycling Limited

With a rich legacy spanning over seven decades, Jain Resource Recycling Limited, a part of the Jain Metal Group, stands as India’s largest and fastest-growing non-ferrous metal recycling company by revenue in Fiscals 2022, 2023, and 2024 (Source: CRISIL).

Company Evolution

• Established in 1953 as Jain Metal Rolling Mills, a partnership firm.

• Reconstituted in 1993 and converted into a private limited company on February 25, 2022.

• Began recycling operations in FY2013 under the erstwhile firm.

Core Operations

The company focuses on manufacturing non-ferrous metal products through recycling, with a robust portfolio comprising:

• Lead and lead alloy ingots

• Copper and copper ingots

• Aluminium and aluminium alloys

Jain Resource Recycling is one of only two Indian recyclers with lead ingots registered as a brand on the London Metal Exchange (LME), granting access to global markets with LME pricing advantages.

Global Expansion & Subsidiary

• Acquired 70% in Jain Ikon Global Ventures (FZC), UAE, in partnership with Ikon Square Limited.

• Commissioned a gold refining facility at Sharjah in August 2024.

Vertically Integrated Recycling Facilities

The company operates three facilities in Chennai and one gold refinery in Sharjah:

• Facility 1: Copper scrap recycling

• Facility 2: Lead and copper scrap recycling

• Facility 3 (via subsidiary JGTPL): Aluminium scrap recycling

• Sharjah Refining Facility: Gold refining

Combined recycling capacity as of January 31, 2025:

• 136,082 MTPA for recycling

• 0.458 MTPA for gold refining

Market Presence and Clientele

• Sourced raw materials from over 120 countries.

• Key customers include Vedanta Limited, Luminous Power, Yash Resources, Mitsubishi Corporation, and Nissan Trading.

• Export revenue share: Over 50% consistently in recent fiscals.

Revenue Overview

• Strong presence in both domestic and international markets

• Export revenues contributed between 50% to 72% of total revenues across recent fiscals

• Sales are spread across key geographies including Singapore, China, Japan, South Korea, and Taiwan

Industry Outlook

India’s non-ferrous metal recycling industry is experiencing significant growth, driven by sustainability initiatives, industrial expansion, and supportive government policies. Companies like Jain Resource Recycling Limited are well-positioned to capitalize on these trends.

Market Size & Growth Prospects

• Asia Pacific Market: The non-ferrous scrap recycling market in the Asia Pacific region generated a revenue of USD 307.5 billion in 2023 and is expected to grow at a CAGR of 4.8% from 2024 to 2030. India is projected to register the highest CAGR during this period.

• India’s Metal Recycling Equipment Market: Expected to reach USD 808.4 million by 2030, growing at a CAGR of 5.6% from 2025 to 2030.

Key Growth Drivers

• Urbanization & Infrastructure Development: Rapid urbanization and infrastructure projects are increasing the demand for recycled metals in construction.

• Automotive & Electronics Demand: The rise in electric vehicles and electronic devices boosts the need for recycled non-ferrous metals like copper and aluminum.

• Environmental Regulations: Government policies promoting recycling and sustainability are encouraging the use of recycled materials.

• Technological Advancements: Innovations in recycling processes, such as advanced sorting technologies, enhance efficiency and metal recovery rates.

Product-Specific Outlook

• Lead: Lead was the largest revenue-generating metal in the Asia Pacific non-ferrous scrap recycling market in 2023 and is projected to register the fastest growth during the forecast period.

• Copper: India’s per capita consumption of copper is anticipated to rise from 0.6 kg to 1.0 kg by 2025, driven by advancements in energy transition and adoption of electric vehicles.

• Aluminum: Recycling aluminum saves up to 95% of the energy required to produce primary aluminum, making it a cost-effective and environmentally friendly option.

How Will Jain Resource Recycling Limited Benefit

• Positioned to benefit from India’s rapidly expanding non-ferrous metal recycling market, projected to grow significantly by 2030.

• Strong alignment with rising demand in lead, copper, and aluminum—metals expected to see fastest growth in Asia Pacific.

• Its LME-registered lead ingots enable premium pricing and global market penetration.

• Export-focused model aligns with increasing global recycling demand, with over 50% revenue from exports.

• Technologically integrated facilities across Chennai and Sharjah boost operational efficiency and scalability.

• Presence in over 120 sourcing countries ensures supply security amid rising raw material demand.

• Rising copper consumption in India, especially for EVs and infrastructure, supports higher domestic sales.

• Gold refining expansion in UAE broadens revenue streams and capitalises on precious metals market.

• Strong client base including global players like Mitsubishi and Nissan Trading enhances credibility and demand stability.

• Backed by a 70-year legacy and continuous evolution, making it resilient in a competitive, regulation-driven market.

Peer Group Comparison

Name of Company	Revenue (₹ million)	Face Value (₹)	EPS Basic (₹)	EPS Diluted (₹)	NAV (₹)	P/E Ratio	RoNW (%)
Jain Resource Recycling Limited	44,284.18	NA	5.29	4.70	11.35	NA	58.08
Peer Groups
Gravita India Limited	31,607.50	2	34.88	34.88	114.07	49.40	35.51
Pondy Oxides & Chemicals Limited	15,405.97	5	13.61	13.57	133.26	41.44	10.62

Key Strategies for Jain Resource Recycling Limited

Global Expansion of Gold Refining Operations

Jain Resource Recycling Limited is scaling gold refining operations globally, including UAE and India, to strengthen its market presence. Leveraging ISL’s sourcing network and their own industry expertise, the company targets increased production capacity and customer reach through strategic partnerships and advanced refining infrastructure.

Strengthening Gold Refining Presence in India

To capitalise on India’s rising gold refining demand, Jain Resource Recycling Limited plans to enter the domestic market. By partnering with capable local refineries, the company aims to achieve operational efficiency, reduce import costs, and benefit from favourable duty structures and growing customer demand.

Diversification into Heavy Minerals Sector

Jain Resource Recycling Limited is diversifying into heavy minerals by establishing mining and processing units in Sri Lanka. Through strategic agreements and exploration licences, the company aims to extract and process Ilmenite, Garnet, Rutile, and Zircon, targeting high-demand global industries like construction, aerospace, and electronics.

Establishing Titanium Slag Plant in Sri Lanka

As part of its diversification strategy, Jain Resource Recycling Limited is setting up a Titanium Slag Plant in Sri Lanka. The project involves a heavy mineral separation unit with advanced equipment, enabling the company to tap into global titanium dioxide markets and meet specialised industrial requirements