Management

• Mohan Agarwal (Chairman & Managing Director)
• Akshay Agarwal (Whole-time Director)
• Raghav Agarwal (Whole-time Director)
• Peter Francis Amour (Nominee Director)
• Balvinder Kumar (Independent Director)
• Gyanmohan (Independent Director)
• Rashmi Verma (Independent Director)
• Girish Paman Vanvari (Independent Director)
• Srishti Saxena (Company Secretary & Compliance Officer)
• Yugal Kishor Garg (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 631 cr, which entirely comprises the offer for sale (OFS) of Rs 631 cr.

Competitive Strengths

Market Leadership in Aluminium Recycling CMR Green Technologies is the leading non-ferrous metal recycler in India by installed capacity and enjoys the highest market share in the Indian secondary aluminium market based on revenue. Its installed capacity is approximately four times that of the nearest domestic competitor, creating significant entry barriers. The company also ranks among the largest aluminium recyclers globally by installed capacity. Such scale provides sourcing advantages, operational efficiencies and stronger customer relationships. As environmental regulations tighten and demand for low-carbon metals increases, CGTL is well positioned as a critical enabler of the aluminium industry's decarbonisation efforts, giving it a strategic advantage over smaller regional recyclers.

Leadership in Liquid Aluminium Supply CGTL is India’s largest supplier of recycled liquid aluminium by turnover. Supplying liquid aluminium requires advanced technical expertise, dedicated infrastructure and precise logistics capabilities, creating high barriers to entry. The company pioneered liquid aluminium transportation using patented technology and has strategically established facilities adjacent to major automotive manufacturing clusters. Liquid aluminium supply offers cost, energy and efficiency benefits to customers, strengthening client relationships and increasing switching costs. This niche capability differentiates CGTL from most recyclers and enables deeper integration into customer manufacturing processes, resulting in recurring demand and stronger market positioning.

Diversified Global Scrap Procurement Network Raw material availability is one of the most important success factors in the recycling industry. CGTL has built a diversified procurement network comprising approximately 198 suppliers across 73 countries. Its suppliers span the United States, Europe, the United Kingdom, Australia, New Zealand, Africa, Thailand and the UAE. Long-standing relationships with global scrap suppliers ensure uninterrupted raw material availability while providing procurement flexibility. Since raw materials constitute a substantial portion of operating costs, access to multiple sourcing channels allows the company to optimise procurement economics and maintain supply security. This global sourcing ecosystem represents a major competitive advantage that would be difficult for smaller competitors to replicate.

Strong Customer Relationships and Strategic Partnerships The company enjoys decades-long relationships with leading automotive OEMs and Tier-1 suppliers. Customers include Maruti Suzuki, Honda Cars India, Hero MotoCorp, Bajaj Auto, Royal Enfield, Endurance Technologies and Craftsman Automation. In addition, strategic partnerships with Toyota Tsusho, Nikkei MC Aluminium and Nippon Light Metal have provided technological expertise, market access and customer acquisition opportunities. These alliances have enabled CGTL to strengthen its presence in liquid aluminium and expand into wrought alloy recycling. Such partnerships enhance product quality, technological capabilities and customer credibility while supporting long-term business growth.

Extensive Manufacturing Infrastructure and ESG Credentials The company operates 13 recycling facilities across India with total installed capacity exceeding 6 lakh MTPA. Its facilities are supported by DSIR-recognised R&D capabilities, stringent quality controls and certifications including ISO 14001, ISO 45001 and IATF 16949. CGTL has also earned the sixth-highest S&P Global Corporate Sustainability Assessment score among aluminium companies evaluated globally. The company actively deploys renewable energy, pollution-control equipment and energy-efficient technologies. As sustainability becomes increasingly important for global supply chains, CGTL’s ESG credentials and environmentally friendly business model enhance its attractiveness to customers, investors and regulators alike.

Peer Comparison

Key Risks & Concerns

Dependence on Automotive Industry Demand A significant portion of the company’s revenue is linked to the automotive sector through sales to OEMs and Tier-1 suppliers. Demand for recycled aluminium alloys is therefore closely tied to automobile production volumes. Any slowdown in vehicle production, weaker consumer demand, regulatory changes, adverse economic conditions or disruptions in the automotive supply chain could directly impact customer orders. While the company has expanded into additional product categories and end markets, automotive remains its largest demand driver. Consequently, cyclical fluctuations in vehicle manufacturing may affect revenue growth, profitability and capacity utilisation levels over time.

Raw Material Procurement and Currency Exposure The company imports a substantial portion of its aluminium and metal scrap requirements from overseas suppliers. Scrap prices are inherently volatile and are influenced by global commodity markets, supply-demand dynamics and geopolitical developments. Since procurement payments are largely denominated in foreign currencies, the company is exposed to currency fluctuations as well. Adverse movements in scrap prices or foreign exchange rates could compress margins and impact profitability. Although CGTL benefits from a diversified supplier network, its dependence on imported raw materials remains an important business risk that investors should monitor closely.

Customer Concentration and Competitive Intensity The company derives a meaningful proportion of revenue from a concentrated customer base. In FY25, the top ten customers accounted for approximately 52.8% of revenue, while the top five customers contributed about 35%. Any loss of major customers, reduction in order volumes or increased insourcing by OEMs could adversely affect business performance. Additionally, the aluminium recycling industry remains fragmented, with numerous regional and unorganised competitors. Intense competition may create pricing pressure and reduce bargaining power. Although industry consolidation may favour organised players over time, maintaining customer relationships and market share remains critical for sustained growth.

Outlook and Valuation

CMR Green Technologies is positioned at the intersection of two powerful long-term themes: increasing aluminium consumption and the global shift toward sustainable, low-carbon manufacturing. Recycled aluminium emits only a fraction of the carbon generated by primary aluminium production while requiring substantially lower capital investment. India’s recycled aluminium market is projected to grow from approximately 2.16 million tonnes in FY25 to around 3.71 million tonnes by FY30, creating a significant runway for industry participants. Given its market leadership, nationwide footprint and established customer relationships, CGTL is well positioned to benefit from this structural growth opportunity.

The company is also expanding beyond traditional cast alloys into extrusion and rolled alloy segments. This expansion increases its addressable market by approximately 0.93 million tonnes and provides access to higher-growth end markets such as construction, packaging and electric vehicles. New facilities in Tirupati and Odisha, combined with strategic partnerships and long-term contracts, enhance growth visibility. Furthermore, the increasing aluminium intensity of electric vehicles, which typically use 50-60% more aluminium than conventional vehicles, is expected to drive additional demand for recycled aluminium products in the coming years.

From an operational standpoint, CGTL combines scale, technology, supplier diversification and ESG leadership in a manner that few domestic peers can replicate. The company has built significant entry barriers through its nationwide recycling infrastructure, liquid aluminium supply capabilities and global scrap procurement network. While risks relating to commodity prices, foreign exchange exposure and automotive cyclicality remain, the long-term outlook appears favourable given industry tailwinds, growing regulatory support for recycling and increasing adoption of sustainable materials across industrial sectors. The company is therefore positioned to remain one of the leading beneficiaries of India’s evolving circular economy ecosystem. CMR Green is valued at a P/E multiple of 30x based on FY25 earnings, based on the upper price band. We recommend a SUBSCRIBE rating for the issue for the long term.