Jain Resource Recycling IPO

Jain Resource Recycling Limited, incorporated on February 25, 2022, evolved from a long-established partnership firm originally founded in 1953 as Jain Metal Rolling Mills and reconstituted in 1993. The company specializes in recycling and manufacturing non-ferrous metal products, including lead and lead alloy ingots, copper and copper ingots, as well as aluminium and aluminium alloys. It operates three recycling facilities in the SIPCOT Industrial Estate, Gummidipoondi, Chennai, processing a range of metal scrap types such as copper (birch, druid), lead (radio, relay, rains, rinks), and aluminium (tread, talon, tense). Additionally, it expanded its operations internationally by launching a gold refining facility on August 19, 2024, in the Sharjah Airport International Free Zone (SAIF-Zone), UAE, through its subsidiary JIGV.

The company’s products serve key industries including lead-acid battery, electrical and electronics, pigments, and automotive. Jain Resource Recycling Limited supplies to both domestic and international clients, with notable customers such as Vedanta Limited-Sterlite Copper, Luminous Power Technologies, Yash Resources Recycling, Mitsubishi Corporation RtM Japan, and Nissan Trading Co. It maintains a strong global presence with exports to countries like Singapore, China, Japan, and South Korea, with export revenue consistently exceeding 50% of total revenue across multiple fiscal years. As of January 31, 2025, the company employed 403 permanent staff.

Jain Resource Recycling IPO Strengths

• Jain Resource Recycling is part of the Jain Metal Group, which has a history dating back to the 1950s, making it a pioneer with deep expertise in the non-ferrous metal recycling industry.
• The company operates through three specialized entities handling lead, copper, plastic, and aluminium recycling, showcasing a robust and diversified business model.
• Jain Resource Recycling is the largest producer of recycled lead ingots in India and a leading producer of recycled copper products, asserting strong market positioning.
• The group uses state-of-the-art facilities with automation and clean recycling processes that ensure high-quality recycled products and efficient operations.
• With sourcing from over 100 locations worldwide and exporting to more than 20 countries, the company has a strong international presence and diversified revenue streams.
• The company is expanding into plastic recycling, e-waste recycling, and die-cast aluminium alloy production, positioning itself for future growth in emerging segments.

Jain Resource Recycling IPO Risks

• The company derives a significant portion of its revenue from sales of lead, lead alloy ingots, copper, and copper ingots. Any adverse change in demand or pricing for these products could impact its financial performance.
• Being a recycling company, Jain Resource Recycling depends on the availability and quality of scrap metal. Any disruption or scarcity in raw material supply could hamper operations.
• The business is subject to stringent environmental and safety regulations. Non-compliance or changes in regulations could increase operational costs or cause legal issues.
• The metal recycling industry is competitive and fragmented. Aggressive pricing or entry of new players may affect market share and margins.
• With international sourcing and exports, currency fluctuations may impact profitability and working capital requirements.
• Loss or reduction in orders from significant clients like Vedanta, Luminous Power, or Mitsubishi Corporation could have an adverse effect on revenue.