The rise of the circular economy marks a critical shift in how businesses approach sustainability, resource management, and economic growth. Leading this transformative wave in India is Elima, a company reshaping traditional linear models through innovative reuse, refurbishing, and recycling initiatives, aiming to eliminate mining and empower closed-loop supply chains. Operating across various sectors and with a presence in multiple Indian cities, Elima is committed to becoming the world's most trusted supplier of recycled materials and pre-owned products. Beyond business, the company pioneers social impact projects, focusing on improving the lives of waste pickers and promoting sustainable practices.
As India strives to achieve its "Viksit Bharat 2047" vision, Elima plays a pivotal role in embedding sustainability into economic progress. In this exclusive interview with TheCSRUniverse, Mr. Abhishek Agashe, Co-Founder and CEO of Elima, delves into how the company bridges the gap between India’s consumption-driven market and the pressing need for sustainable resource management. He discusses the integration of advanced recycling technologies and the scaling of their circular economy model, shedding light on the challenges and opportunities that define Elima's journey as a key player in the Digital India and Make in India movements.
The conversation explores Elima's business model and its broader societal impact—creating jobs, fostering social inclusion, and contributing to long-term environmental sustainability. Through a unique blend of technology, innovation, and policy alignment, Elima is paving the way for an India that is both economically resilient and environmentally responsible. This interview offers a thought-provoking glimpse into the future of circular economy practices and their potential to transform India’s industrial landscape on a global scale.
Read the full interview below.
Q&A
Q. Elima is working towards transforming India's business landscape through circular economy practices. Could you explain how your focus on reuse, refurbishing, and recycling is helping to redefine traditional linear business models, especially in the context of achieving the "Viksit Bharat 2047" vision? What challenges and opportunities do you face in scaling up this model across India?
A. India is at a pivotal juncture where consumption is on a rapid rise, and domestic manufacturing needs to expand significantly to meet both local demand and global market opportunities. While we have established ourselves as a leading exporter of services, it is crucial to scale up our manufacturing capabilities to truly capitalize on the China+1 strategy.
In a cost-sensitive yet consumption-driven market like India, the penetration of electronics, beyond smartphones, remains relatively low. One of the main barriers is affordability. Through our focus on refurbished and renewed products, we aim to make high-quality electronics accessible to every Indian, enhancing their quality of life. Our goal is to democratize consumption by offering top-tier products at competitive prices, coupled with superior after-sales service. We aspire to provide a lifecycle experience that surpasses what original equipment manufacturers (OEMs) offer.
Our recycling division, on the other hand, is dedicated to becoming the most reliable source of high-quality secondary materials for manufacturers and OEMs across industries. Given India's limited natural resources and dependency on imports, we firmly believe that urban mining—recycling—will play a pivotal role in fulfilling the country’s resource demands in the coming decades. Our focus is on enhancing the quality and consistency of the secondary raw materials we produce.
We aim to be an integral part of both the Digital India consumption narrative and the Make in India manufacturing movement, supporting the vision of a "Viksit Bharat" by 2047. Our commitment is to help position India as a formidable force on the global stage, contributing to its sustainable and inclusive growth.
Q. How do you see the Production Linked Incentive (PLI) scheme and Extended Producer Responsibility (EPR) policies influencing sustainable manufacturing and the adoption of circular economy practices? Are there specific ways these policies could be improved or integrated to drive greater impact?
A. The Production Linked Incentive (PLI) scheme is designed to bolster manufacturing growth in India, while the Extended Producer Responsibility (EPR) policies aim to ensure a steady supply of secondary raw materials for manufacturing, ideally at scale and with reduced material costs. Although these policies currently operate in silos, they are inherently complementary, and we foresee them converging in the near future. In fact, circular economy practices and EPR will be key drivers of manufacturing growth. The integration of these policies is inevitable as the industries evolve.
Presently, both policies are contributing to the development of capabilities and driving infrastructure investments in manufacturing and recycling. As these industries mature—particularly the recycling sector—and become capable of meeting the demands of OEMs, the integration will naturally follow.
Regardless of policy integration, OEMs and recycling companies are already beginning to collaborate and pilot initiatives to explore the use of secondary raw materials on a larger scale. At Elima, we are actively engaged in discussions with several OEMs to pioneer such collaborations, paving the way for broader acceptance and utilization of recycled materials in manufacturing.
Q. In what ways does Elima's work within the waste management ecosystem create job opportunities? How do you balance long-term sustainability and profitability with your social and environmental impact?
A. The core principle of the circular economy is to establish circular supply chains, which inherently generate 50-60% more jobs compared to traditional mining. The broader waste management sector already employs millions of individuals, but there is a need to upskill these workers so they can take on more advanced roles within the industry. At Elima, we collaborate with various ecosystem stakeholders to recruit and train staff, equipping them with the latest skills in refurbishing and recycling based on industry best practices.
Since our inception, we have remained profitable without external capital, allowing us to focus on cost management and operational efficiency. We believe that profitability is intrinsically linked to the value we create for our customers and our ability to optimize costs through increased efficiency across all business functions. Our core business model is centered around reducing environmental impact, and we adhere to stringent pollution control standards and EHS guidelines at our recycling and refurbishing facilities to ensure a net zero adverse environmental footprint.
On the social front, we have a dedicated social impact department that collaborates with leading NGOs and global institutions to improve the livelihoods of informal waste workers. We are actively exploring partnerships with State and National Skill Development Departments to create job opportunities and upskill workers, enabling them to contribute meaningfully to the circular economy. Our goal is to foster sustainable growth that balances long-term profitability with positive social and environmental impact.
Q. Can you share specific examples of how Elima leverages digital technology to enhance operations, improve efficiency, and drive innovation in the circular economy?
A. In today’s business landscape, digital technology is a fundamental enabler, and at Elima, we leverage it to enhance traceability, generate insights, and support decision-making with intelligent pricing algorithms. This technology not only improves our operational efficiency but also provides our customers with a comprehensive view of their recycling goals and achievements.
E-waste is a particularly complex waste stream, comprising a diverse range of materials that require meticulous sorting to maximize value recovery. To address this challenge, we are developing a sophisticated intelligence system across product categories. This system will analyze recovery rates, assess value, and identify material types, allowing us to streamline operations and increase throughput. Our vision is to evolve into a tech-enabled manufacturing company, where technology plays a pivotal role in driving innovation and operational excellence.
Moreover, this digital infrastructure differentiates us from other recyclers and offers a scalable model that can be replicated across the country. By integrating technology into our processes, we aim to set a new standard in the circular economy and expand our impact nationwide.
Q. How does Elima encourage manufacturers to take responsibility for the lifecycle of their products? What strategies are you implementing to promote consumer acceptance of refurbished and recycled products?
A. For a circular economy to function effectively, all stakeholders, particularly OEMs, must embrace a lifecycle approach. This involves designing products that are modular, easy to repair and refurbish, and made from materials that can be efficiently recycled. The selection of recyclable materials is equally critical in this process.
Another key area is optimizing distribution and reverse supply chains. A significant challenge in establishing sustainable reverse logistics is the cost associated with product acquisition and first-mile logistics. Often, the cost of collecting, transporting, and processing a product exceeds its recovered value. To overcome this, we need stronger collection mechanisms and collaboration among all stakeholders to ensure that end-of-life products reach the appropriate recycling or refurbishing facilities efficiently and at viable price points. This requires robust take-back systems to minimize leakages and improve recovery rates.
From a consumer perspective, the focus is on accessibility and affordability. To achieve this, refurbishers and recyclers must enhance the quality of their output and achieve cost efficiencies that make their products indistinguishable from new or virgin alternatives. Our goal is to produce recycled and refurbished products of such high quality and at such competitive price points that consumers naturally choose them, without needing to be informed that they are made from recycled materials. When this level of quality and acceptance is achieved, sustainable products will seamlessly integrate into mainstream consumption.
Q. How critical are public-private partnerships in scaling Elima’s circular economy practices? Can you highlight some key collaborations that have been instrumental in your success?
A. Public-private partnerships (PPPs) are essential for scaling circular economy practices, especially in emerging sectors like climate and sustainability, which are still in their developmental stages. We’ve seen the impact of such partnerships in the solar and EV sectors, where government incentives and subsidies have driven mass adoption. Similarly, the recycling industry, being in its nascent stage and infrastructure-heavy, requires robust support from both government and industry to thrive.
In the context of PPPs, we view the government’s role as providing resources that private players may not be able to access independently at this stage. This includes access to credit, land for infrastructure development, Recycling Linked Incentives, Green Procurement Policies, and grants for R&D support.
Traditionally, waste management has operated under a PPP model, where collection, transportation, and processing are outsourced to private players.
However, we envision a broader, more integrated partnership where the government plays a strategic and supportive role.
We have benefited significantly from such collaborations. For instance, the Credit Guarantee Scheme introduced by the Government of India was instrumental in helping us establish and scale our operations. Looking ahead, we are advocating for initiatives like the creation of dedicated Recycling Zones, similar to SEZs, where land can be provided at lower costs to facilitate the growth of recycling companies. Additionally, we are exploring partnerships with Urban Local Bodies (ULBs) to establish decentralized infrastructure for collection and segregation, thereby optimizing first-mile logistics and improving segregation efficiency.
Furthermore, we see significant potential in positioning the government as a major consumer of recycled products and materials, given its substantial procurement needs. By fostering these collaborations, we aim to create a supportive ecosystem that accelerates the adoption of circular economy practices across the country.
Q. How do initiatives like the Bisleri "Bottles for Change" program align with Elima’s mission? How do you measure and evaluate the positive impact of your projects on communities and the environment?
A. Initiatives like the Bisleri "Bottles for Change" program resonate strongly with Elima's mission of fostering a circular economy through responsible waste management and recycling. Such programs play a crucial role in creating awareness, encouraging community participation, and promoting the value of recycling at the grassroots level. By involving consumers directly, they help in building a culture of recycling, which is essential for the success of circular economy practices. At Elima, we share this vision and aim to amplify it by providing the necessary infrastructure and expertise to ensure that collected materials are effectively recycled and reintegrated into the supply chain.
To measure and evaluate the positive impact of our projects, we employ a multi-faceted approach. For environmental impact, we track metrics such as the volume of waste diverted from landfills, the amount of secondary raw materials produced, and the reduction in carbon emissions achieved through recycling processes. For social impact, we assess the livelihoods supported, the number of informal waste workers upskilled and integrated into the formal economy, and the communities benefited through our initiatives.
We also collaborate with third-party organizations to conduct impact assessments and ensure transparency and accountability in our operations. By continuously monitoring these indicators, we strive to refine our practices, enhance our impact, and contribute meaningfully to sustainable development and community well-being.
Q. As Elima plans its expansion and contemplates funding, what are your strategic priorities? What ambitious goals do you have for the company, and how do you plan to achieve them?
A. As we continue to expand, we've recognized the importance of narrowing our focus to specific areas where we see significant potential for scaling and value creation. This involves making strategic decisions to phase out certain segments that, while currently profitable, do not align with our long-term vision for sustainable growth. These decisions are never easy, but they are necessary to ensure we concentrate our efforts on developing strong, differentiated moats and intellectual property in 2-3 key areas where we can make a substantial impact.
Our vision is clear: we aspire to become a global leader in supplying high-quality secondary products and raw materials. We want Elima to be known for its innovation and operational excellence, setting a benchmark for others in the industry. Our goal is to master the fundamentals and execute them flawlessly, even if they seem mundane.
In terms of growth, we are targeting a significant presence in the global circular economy market, which is projected to be worth $4.5 trillion. We aim to secure a meaningful share of this market by consistently achieving our milestones and staying committed to our long-term objectives.
We understand that building something truly impactful, large, and profitable takes time. We are not focused on rapid top-line growth or quick exits. Instead, we are dedicated to creating an enduring institution. As we explore external funding, we will seek out patient capital that appreciates the complexity and nascent nature of our industry, and is willing to support our vision of building a global and sustainable organization over the long term.
Q. Given the increasing global focus on sustainability, how is Elima positioned to compete and collaborate with international players in the circular economy market? What opportunities and challenges do you see for Indian companies in the global arena?
A. To draw a parallel, if you can learn to drive in India, you can drive anywhere in the world. Similarly, if you can build a business in India, you can build it anywhere else. The Indian circular economy market is one of the most complex globally, with its unique challenges in procurement, operations, unit economics, price sensitivity, customer acceptance, and competition. However, global players are bound to be interested in India, as it is poised to become a significant market for secondary products and raw materials. Typically, these international companies enter India with a strong backing of technology (IP) and capital. However, navigating the Indian market with its distinct cost structures and operational intricacies is no easy task.
Therefore, I foresee many international companies seeking collaborations with Indian businesses through strategic investments, mergers and acquisitions (M&As), and joint ventures (JVs) to establish their presence here.
What I am particularly excited about is seeing Indian companies expanding their operations globally. This is an area where I believe we will see significant growth. Many Indian companies are now focusing on creating differentiated technologies and building their own intellectual property. Coupled with their in-depth operating experience and a keen focus on unit economics, I believe Indian companies are well-positioned to scale internationally in the near future.
In the broader landscape, I anticipate a surge in strategic partnerships, investments, and M&As, as companies with domain expertise in specific materials or product categories collaborate to form larger entities capable of handling multiple product and material streams. This consolidation will enable the industry to achieve scale and efficiency, making it more competitive on the global stage.
