IT solutions and electronics manufacturing services firm Cerebra Integrated Technologies Ltd has signed a share purchase agreement (SPA) with Singapore-based Enviro-Hub Holdings to acquire its wholly owned subsidiary Cimelia Resource Recovery Pte Ltd for $20 million (Rs 107 crore), as per a company disclosure. The deal will boost the e-waste recycling business of public-listed Cerebra.
Cimelia operates its recycling and PGM refining facility in Singapore and has a capacity to recycle 30,000 mega tonnes of e-waste and other waste. The firm started its operations back in 2004 and works as a subsidiary of Enviro-Hub Holdings. It also has a white goods recycling plant in Singapore.
With the acquisition of technology from Cimelia, Cerebra will be able to build one of the largest facilities for e-waste recycling in Bangalore. Spread across 10 acres, the plant will be set up with an investment of $10 million.
“We will be among the first global Indian MNC in this sector with one of the finest e-waste facilities in the world,” said V Ranganathan, managing director of Cerebra. “Through the new plant and alliance, Cerebra will be better equipped to refurbish, reuse and recycle e-waste. It will get an entry in international market through Cimelia’s global network and clientele,” he added.
Grant Thornton India LLP was the financial advisor and Dacheng Wong Alliance LLP, Singapore, was the legal advisor on this acquisition.
Founded in 1992, Cerebra Integrated Technologies provides software, IT training and consulting, legal process outsourcing, business process outsourcing and knowledge process outsourcing services. The company started its Indian e-waste operations from a temporary facility in Peenya Industrial Area, Bangalore.
The firm’s turnover for the year ended September 2012 was pegged at Rs 164 crore.
Other firms in this space include Noida-based Attero Recycling, which raised $8.3 million from IFC, Granite Hill and other existing investors, and Eco Recycling Ltd, which also raised funding.
(Edited by Sanghamitra Mandal)