IT solutions provider Cerebra Integrated Technologies today said it has signed an agreement to acquire e-waste recycling firm Cimelia Resource Recovery for USD 20 million (about Rs 110 crore).
In a filing to BSE, Cerebra said that it has "signed a share purchase agreement with Singapore-based Enviro-Hub Holdings Ltd to acquire 100 per cent of its wholly-owned subsidiary Cimelia Resource Recovery Pte Ltd. Cerebra will be investing approximately USD 20 million for the proposed acquisition".
Grant Thornton India was the integrated financial adviser and Singapore-based Dacheng Wong Alliance was the integrated legal adviser for this deal, it added.
Through this deal, Cerebra aims to acquire technology, know-how and international expertise that Cimelia has garnered over about nine years in the e-waste management industry.
Cimelia will also bring with it a strong client relationship with global giants, it said.
"We will be amongst the first global Indian MNC in this sector with one of the finest e-waste facilities in the world at Singapore. This acquisition will also help us to build one of the largest facilities in Bangalore," Cerebra Managing Director V Ranganathan noted.
The proposed plant will be set up with an investment of USD 10 million (about Rs 55 crore) at Bangalore. E-waste will be processed at this proposed end-to-end integrated e-cycling plant spread over approx 1 lakh sq feet, the filing said.
Globally, the e-waste recycling industry is estimated to be around USD 20 billion. It is one of the fastest growing industries worldwide.
E-waste recycling market in India is estimated at USD 2 billion. India generates 2.5 million tonnes of waste annually, while Bangalore generates about 75,000 of e-waste per year and Mumbai over 82,000 tonnes a year.
Cerebra is a global services provider delivering business solutions. Its has a manufacturing facility in Peenya and ITeS division in Yeshwanthpur, Bangalore.