Allied Computers to build first e-waste plant in Gujarat

Even as e-waste concerns grow across the country, Allied Computers International (Asia), a Mumbai-based company which makes laptops, is set to convert the problem into a business opportunity.

Hirji Kanji Patel, a missile scientist from the UK and chairman of the company, is planning to set up the country's first chip-level laptop motherboards and parts recycling plant at Gandhinagar in Gujarat.

Under the proposed venture, Patel plans to import electronic waste such as motherboards from the UK and recycle them at the plant at Gandhinagar.

"To begin with, we might be able to recycle 150 motherboards a month, but once we install our machinery in six months time, we plan to ramp it up to 5,000 motherboards per month," said Patel.

While the new facility will cost Rs 5 crore, the company plans to raise around Rs 100 crore through foreign currency convertible bonds (FCCBs). Initial formalities were underway, said Patel.

The funds will be utilised by the company's for setting up 100 laptop service centres, constructing a plant for laptop, motherboards, parts and screen repairs at Vasai and for extending its presence to other cities.

This is the second round of funding planned by the company after it was listed in November 2007 and raised Rs 6 crore from its initial public offer.

The company is planning to start production of laptops at Gandhinagar by the first quarter of next year. Laptops from this plant will be exported.

For domestic consumption, the company will use the existing Vasai plant, which currently manufactures 2,000 laptops a month. The facility will be ramped up to produce 25,000 units per month by next year.

The company recorded a turnover of Rs 35 crore for the financial year 2006-07. This was expected to jump to Rs 70-75 crore on the back of low-priced laptops in the range of Rs 20,000-30,000, added Patel.