UAE-based company to set up 8 warehouses in port cities
United Arab Emirates-based Cosmos Green FZE is planning to set up a metal scrap exchange to meet the recycling demand of metal manufacturers in India using blockchain technology.
“It will be the first metal scrap exchange in India with private warehouse catering to the demands of metal scrap manufacturers in the country on real-time basis,” said Rajat Kapur, president, Cosmos Green FZE.
“Currently, Indian steel manufacturers are meeting their demand by extracting it from iron ore. We have started this firm with a vision to save natural resources and provide cheaper and energy efficient product to the Indian metal scrap manufacturers. The scrap is imported from the U.S. and Europe,” he said.
As a first step, Cosmos Green FZE established three scrap processing yards in the NCR (national capital region). It will be followed by the setting up eight warehouses within a year in the port cities of Mumbai, Gujarat and Chennai. It had also entered into a pact with 20 firms including Jindal Steel to recycle metal scrap.
“The Indian outfit was started with promoters’ seed funding of $3 million. It will be sufficient till May 2019. We are planning to raise $120 million in four tranches and have started negotiations with private equity firms,” he said. The new warehouses admeasuring 50,000 sq.ft, will have a mini-furnace, shredder and storage place. The investment in each warehouse is about ₹2 crore, while the rest of the money will be used for machinery and procuring scrap.
“India needs 5,00,000 tonnes of scrap every month. Right now, we are handling 10,000 tonnes of scrap every month and our target is to touch 1,80,000 tonnes per month by 2024,” he said.
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