Mahindra Intertradeand MSTC Ltd. Partner to set up India’s First AutoShredding Facility

Mahindra Intertrade Ltd.,apart of the USD 16.9 billion Mahindra Group, has signed a Memorandum of Understanding (MoU) with MSTC Ltd.

Delhi, April 28, 2016:Mahindra Intertrade Ltd.,apart of the USD 16.9 billion Mahindra Group, has signed a Memorandum of Understanding (MoU) with MSTC Ltd. (a Government of India enterprise formerly known as Metal Scrap Trading Corporation Limited). The MoU will see the companiesundertake a joint initiative to set up India’s first auto shredding facility.The MoU was signed under the aegis of the Honorable Minister of Steel and Mines, Shri Narendra Singh Tomarji. The Secretary Steel (Government of India), Shrimati Aruna Sundarajan graced the occasion while senior management from the Mahindra Group -Zhooben Bhiwandiwala,Managing Partner, Mahindra Partners, Sumit Issar, Managing Director, Mahindra Intertrade Ltd. and Shailendra Krishna Tripathi,Chairman &Managing Director, MSTC Ltd. were also present.

Auto-shredding in India is largely an unorganized activity with vehicles long past their usable life still in use, especially in rural and semi-urban India. Older vehiclesare currently dismantled in an unscientific manner, hazardous to the environment. The extent to which the vehicle is recycled is also very minimal, with most vehicular residue making its way into landfills.The proposed facility will be equipped with state-of-the-art, fully automated end-of-life vehicle recycling equipment andwill be India’s first such facility. This will go a long way in the efficient recycling of scrapped automobiles.

Speaking on the occasion,Mr. S. K. Tripathi, Chairman & Managing Director, MSTC Ltd.said, “We are delighted to partner with Mahindra Intertrade for this industry first initiative. MSTC is always looking at innovative ways to recycle scrap and protect the environment and this facility will help to participate inthe emission targets which India has promised to fulfil via the COP 21 Emission Treaty.”

“The concept of vehicle scrappage is still new to India as compared to the West where it is a lucrative industry. While the number of cars has increased substantially over the last two decades, there is no recycling or scrapping provision in place to deal with old and discarded vehicles. Recycling, if done correctly, is not only environment friendly but will also help keep older vehicles off the streets. We are delighted to have MSTC Ltd. partner with us in this project which presents so much potential,” said Zhooben Bhiwandiwala, Managing Partner, Mahindra Partners.

According toSumit Issar, Managing Director, Mahindra Intertrade Ltd.,"Our study indicated that recycling not only saves energy costs but also minimizes the need for other resources as every tonne of new steel manufactured from scrap steel saves a substantial amount of iron ore, coal and limestone. Moreover, if India focuses on scrapping old automobiles, it can recover significant amounts of steel scrap, aluminium scrap, plastic and rubber. Hence, there is a pressing need for facilities such as this one.”

Given the new stricter norms related to road worthiness of automobiles, a huge number of vehicles are expected to come under the end-of-life category in India. This initiative will not only revolutionise the way automotive scrap is generated and procured in India, but will also help reduce dependence on imports, providing steel mills with a one-stop solution for all their metal scrap related needs.

About MSTC Limited

MSTC Limited is a Mini Ratna Category-I PSU under the administrative control of the Ministry of Steel, Government of India. The company was set up in 9th September 1964 to act as a regulating authority for export of ferrous scrap. MSTC Ltd., has been engaged in domestic and international trading activity for over 30 years. Visit us at www.mstcindia.co.in

About Mahindra Intertrade Limited

Mahindra Intertrade is a wholly owned subsidiary of the Mahindra Group. Intertrade owns and operates the country’s largest network of steel service centres across the Automotive, Power and Home Appliances verticals. Intertrade is a leading player in the processing of automotive steel in Western India, and in electrical steel for power and home appliance applications.

 

Mahindra Intertrade operates steel service centres at Pune, Nashik, Chakan, Vadodara and Bhopal in India, and at Sharjah in the Middle East.Visit us at mahindraintertrade.com

About Mahindra Partners

Mahindra Partners is the $900 Million Private Equity division of the Mahindra Group, whose mission is to accelerate value creation through a diversified portfolio of emergent businesses. Mahindra Partners adapts the Group’s unique strengths of constant innovation, prudence and creative business models with a mandate of incubating new ventures for the Group. The division provides growth capital to bring our stakeholders diversified products and services.

Mahindra Partners also manages portfolio companies in various industry sectors like Retail, Renewables, Steel, Logistics, Vocational Education, Consulting, Media, Luxury and Boat Manufacturing, and Conveyor Systems.

About Mahindra

The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency.

A USD 16.9 billion multinational group based in Mumbai, India, Mahindra provides employment opportunities to over 200,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles,information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheelerindustries.

In 2015, Mahindra & Mahindra was recognized as the Best Company for CSR in India in a study by the Economic Times.In 2014, Mahindra featured on the Forbes Global 2000, a comprehensive listing of the world’s largest, most powerful public companies, as measured by revenue, profit, assets and market value. The Mahindra Group also received the Financial Times ‘Boldness in Business’ Award in the ‘Emerging Markets’ category in 2013.

Visit us at www.mahindra.com

For further enquiries please contact:

Metabelle Lobo

General Manager, Group Communications

Mahindra Group

Phone: +91 2224975178

Email: lobo.metabelle@mahindra.com

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