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Horizon Reclaim (India) Limited is engaged in recycling and processing waste rubber into reclaimed rubber, devulcanized rubber, rubber compounds, rubber crumbs, and related industrial products. The company also manufactures and supplies tyre pyrolysis oil, recovered carbon black (RCB), industrial fuel oil, and associated recycling outputs derived from waste tyres and rubber materials. Its business model is aligned with circular economy principles, generating revenue from recycled rubber products, pyrolysis-derived products, and industrial recycling solutions.

The company primarily serves rubber product manufacturers, industrial processors, tyre-related industries, petrochemical users, and recycling ecosystem participants. Its operational footprint includes facilities in Saharanpur (Uttar Pradesh), Bhagwanpur-Haridwar (Uttarakhand), and Rajkot (Gujarat). The Uttarakhand facility strengthens production capabilities, while the Gujarat unit supports the company's expansion into pyrolysis oil manufacturing, enhancing geographical diversification and future capacity growth.

The product portfolio spans reclaimed rubber, rubber crumbs, rubber compounds, recovered carbon black, tyre pyrolysis oil, industrial fuel oil, steel wire recovered from waste tyres, and machinery used in rubber and pyrolysis processing. These products occupy critical positions within the tyre recycling, rubber manufacturing, industrial fuel, and sustainable materials value chain. The company's integrated recycling operations enable value extraction from end-of-life tyres while supplying industrial raw materials to downstream customers.

Expansion has been a key strategic focus. During FY2025, the company completed construction and installation of plant and machinery at its Bhagwanpur, Haridwar facility (Unit III). It also acquired land and initiated construction, including installation of a pyrolysis reactor, for its Rajkot, Gujarat pyrolysis oil manufacturing facility (Unit II). No material acquisitions, divestments, mergers, or amalgamations were undertaken during the last ten years.

The company maintains banking relationships primarily with ICICI Bank Limited and is led by Managing Director & CFO Mohit Bajaj and Whole-Time Director Malika Bajaj.

Management & Strategic Vision

Management is pursuing a growth strategy centered on expanding recycling capacity, increasing value-added product offerings, and strengthening its position within India's waste tyre recycling and circular economy ecosystem. Recent investments in new manufacturing facilities, pyrolysis infrastructure, and machinery installation indicate a strong focus on vertical integration and higher-margin product segments such as pyrolysis oil and recovered carbon black.

The company's expansion strategy appears to be funded through a combination of debt financing, promoter support, internal accruals, and fresh equity capital through the IPO. Significant investments in fixed assets and capital work-in-progress demonstrate an aggressive growth phase. Net fixed assets increased from ₹222.15 lakh in FY2024 to ₹581.95 lakh in FY2026, while capital work-in-progress expanded to ₹3,619.54 lakh by FY2026, reflecting substantial ongoing project execution.

Management's long-term vision is supported by regulatory tailwinds in waste management, Extended Producer Responsibility (EPR) frameworks, and growing demand for sustainable industrial inputs. Registrations obtained from the Central Pollution Control Board (CPCB) for waste tyre recycling and EPR-related activities further reinforce strategic alignment with India's environmental sustainability objectives.

Industry Analysis

Horizon Reclaim operates within the waste tyre recycling, reclaimed rubber, recovered carbon black, and tyre pyrolysis industry. The sector benefits from increasing environmental regulations, stricter waste management norms, rising focus on circular economy initiatives, and growing demand for recycled industrial raw materials. Waste tyre recycling has become strategically important due to rising tyre disposal volumes globally and increasing sustainability commitments from industrial manufacturers.

In India, regulatory support through Extended Producer Responsibility (EPR) regulations and CPCB oversight is accelerating organized recycling activity. Demand for reclaimed rubber is driven by tyre manufacturing, footwear, automotive components, conveyor belts, molded rubber goods, and industrial applications. Simultaneously, pyrolysis-derived products such as tyre pyrolysis oil and recovered carbon black are gaining acceptance as cost-effective substitutes for conventional industrial fuels and raw materials.

The long-term outlook remains favorable as governments and industries prioritize resource recovery, waste reduction, and sustainable manufacturing practices. Increasing industrial demand for alternative fuels and recycled materials supports industry growth prospects. The competitive landscape includes organized recyclers, reclaimed rubber manufacturers, pyrolysis operators, recovered carbon black producers, and integrated waste-management companies. The sector's growth is also supported by increasing compliance requirements for tyre producers and importers under EPR regulations.

Key Risk Factors

1. Capital-Intensive Business Model

The business requires substantial investments in manufacturing facilities, pyrolysis infrastructure, equipment, and working capital. Any inability to secure funding on acceptable terms could delay expansion plans and adversely impact future growth and profitability.

2. Dependence on Waste Tyre Availability

Operations rely on consistent procurement of waste tyres and recyclable rubber materials. Supply disruptions, regulatory restrictions, collection inefficiencies, or increased competition for feedstock could negatively affect production volumes and margins.

3. Regulatory Compliance Risk

The company operates within a heavily regulated environmental framework. Changes in CPCB regulations, pollution-control requirements, waste-management policies, or EPR compliance obligations could increase costs and operational complexity.

4. Expansion Execution Risk

The company is undertaking significant capacity expansion projects, including new pyrolysis facilities. Delays in project execution, cost overruns, commissioning issues, or lower-than-expected utilization could affect return on investment and earnings growth.

5. Commodity Price and Margin Volatility

Profitability may be affected by fluctuations in prices of recovered carbon black, pyrolysis oil, reclaimed rubber, industrial fuel products, and other recycled materials. Changes in market pricing can influence margins and revenue realization.

6. Debt and Leverage Risk

The company has utilized multiple borrowing facilities for expansion and working capital requirements. Higher interest costs, refinancing challenges, or tighter credit conditions could impact liquidity and financial flexibility.

7. Industry Competition

The recycling and reclaimed rubber industry includes organized and unorganized players competing on procurement, processing efficiency, product quality, and pricing. Sustained competitive pressures may affect market share and profitability.

Strengths & Opportunities

1. Integrated Circular Economy Business Model

The company transforms waste tyres into multiple value-added products including reclaimed rubber, recovered carbon black, pyrolysis oil, and industrial fuel products, enabling revenue diversification and efficient resource utilization.

2. Strong Regulatory Positioning

Registrations obtained from the Central Pollution Control Board and participation in the Extended Producer Responsibility ecosystem position the company favorably within India's evolving waste management framework.

3. Ongoing Capacity Expansion

Recent completion of the Haridwar facility and development of the Rajkot pyrolysis project provide meaningful growth opportunities through increased production capacity and broader product offerings.

4. Exposure to Sustainable Manufacturing Trends

Increasing adoption of recycled materials and environmentally responsible industrial processes creates long-term demand opportunities for reclaimed rubber, recovered carbon black, and pyrolysis-derived products.

5. Diversified Product Portfolio

The company participates across multiple segments of the tyre recycling value chain, reducing dependence on a single product category while enhancing cross-selling and operational synergies.

6. Scalable Infrastructure Platform

Significant investments in fixed assets and capital work-in-progress indicate a scalable operating platform capable of supporting future production growth and market expansion.