Each tonne of aluminium manufactured through recycling results in saving of 5-6 tonnes of bauxite, 1-1.5 tonnes of limestone, 20-25 tonnes of water and ~14000 kwh of energy: Mohan Agarwal, MD, CMR Green Technologies
Mohan Agarwal, Managing Director, founded CMR Green Technologies in 2006 with a single plant. Today, the company has grown to 12 plants across India. CMR is a pioneer in the industry to scale up, and over the past few years, it has expanded its metal recycling capacity to over 418,000 tonnes per annum. Since its inception, CMR has recorded a CAGR of over 25 per cent and solidified its position as India's leading producer of aluminium-based die-cast alloy, a critical component for automotive manufacturers.
In this Interview, Agarwal has put the spotlight into the Indian aluminium recycling business. He reveals about the dips and floats of the ever-evolving market and shares his experience of surfing through the tides of time.
AL Circle: What is the primary business model of CMR Green Technologies? How has it sustained in the Indian economy?
Mohan Agarwal: CMR Green Technologies Limited is primarily focuses on recycling aluminium and other non-ferrous metals. We produce aluminium and zinc alloy ingots, aluminium billets and furnace ready scraps of brass, copper, zinc, magnesium, and stainless steel, we supply alloys to nearly all auto OEMs and major Tier 1s in both solid and molten forms. Non-auto products are supplied to industry stalwarts in those areas
The business model has sustained in the Indian economy by leveraging advanced technologies, maintaining a diversified supplier base, and focusing on sustainability and environmental responsibility.
AL Circle: How has consumer demand and market perception of recycled aluminium changed over the past decade?
Mohan Agarwal: Over the past decade, there has been a significant shift in consumer demand and market perception towards recycled aluminium. The growing awareness of climate change and the emphasis on sustainability have led to a preference for eco-friendly and recycled products.
The International Aluminium Institute predicts a 40 per cent increase in demand by 2030, driven by the automotive and construction industries.
AL Circle: What were some of the major challenges in the Indian secondary aluminium alloy market when you first entered the industry? At present, how does CMR contribute towards shaping the current secondary aluminium alloy market in India?
Mohan Agarwal: When CMR Green Technologies first entered the industry, some of the major challenges included weak infrastructure, lack of awareness about the benefits of scrap metal recycling, and competition from low-cost imports. Today, CMR Green Technologies is a market leader in the Indian secondary aluminium market, holding a significant market share and leveraging advanced sorting technologies to maintain high efficiency and quality.
AL Circle: Can you share key moments that marked turning points for CMR Green Technologies?
Mohan Agarwal: Key moments for CMR Green Technologies started with our first plant in 2006. It was ahead of its’ time in terms of scale and scalability and included the latest European technology available in the world at that time. Then we introduced Liquid Aluminium in 2008, where we still hold over 70 per cent market share. The company's continuous technological advancements and strategic joint ventures with global partners have also been pivotal in its growth.
AL Circle: How has the transnational push for sustainability and circular economy impacted the aluminium recycling business?
Mohan Agarwal: The global push for sustainability and the circular economy has significantly impacted the aluminium recycling business. Each tonne of aluminium manufactured through recycling results in saving of 5-6 tonnes of bauxite, 1-1.5 tonnes of limestone, 20-25 tonnes of water and ~14000 kwh of energy (~90-95 per cent of energy savings as per International Aluminium Institute), leading to substantial reductions in greenhouse gas emissions. CMR Green Technologies has embraced these principles by implementing closed-loop systems for the use of recycled materials.
AL Circle: What technological advancements do you believe are currently driving efficiencies in the aluminium recycling sector? How does the company plan to position itself amidst growing sustainability mandates and technological advancements?
Mohan Agarwal: Technological advancements such as Heavy Media Separation, XRT, LIBS, Decoaters and Regenerative Burners are driving efficiencies in the aluminium recycling sector. CMR Green Technologies plans to position itself by continuously upgrading its technologies, investing in R&D, and maintaining its commitment to sustainability.
AL Circle: How do you see the competitive landscape of the Indian aluminium market evolving today compared to five years ago? What trends do you foresee shaping the Indian market over the next decade?
Mohan Agarwal: The competitive landscape of the Indian aluminium market has become more dynamic, with increased competition and technological advancements. Over the next decade, trends such as the rise of electric vehicles, more use of Aluminium content in vehicles, preference of SUVs (have high Aluminium content) over sedans, increased demand for recycled aluminium across other sectors, and stricter environmental regulations are expected to shape the market.
AL Circle: What government policies or regulatory changes do you think are crucial for the growth and sustainability of the sector?
Mohan Agarwal: Crucial government policies include the Non-Ferrous Scrap Recycling Policy, which promotes scientific processing and recycling of non-ferrous scrap, the Vehicle Scrappage Policy, which aims to identify and scrap old, unfit vehicles. These policies, along with lower import duty on scrap and incentives for using recycled materials, are essential for the growth and sustainability of the sector.
AL Circle: How would you describe your leadership philosophy in steering CMR Green Technologies through market changes? Alongside, what legacy would you like to leave behind in the aluminium recycling industry?
Mohan Agarwal: Our philosophy is centred around innovation, sustainability, and continuous improvement. I believe in fostering a culture of excellence and adaptability to navigate market changes. The legacy I aim to leave behind is one of environmental stewardship and industry leadership, ensuring that CMR Green Technologies remains at the forefront of sustainable aluminium recycling.
