Horizon Reclaim (India) Limited
1. Overview
Horizon Reclaim (India) Limited is an Uttarakhand-based reclaimed rubber manufacturer engaged in converting end-of-life tyres and rubber scrap into industrially reusable rubber compounds. Incorporated in 2006 and operating from its 14,100 MT per annum facility at Roorkee, Haridwar, the Company has built a sustained operational track record of over 19 years under the leadership of Promoters Mr. Mohit Bajaj and Mrs. Malika Bajaj. Its product portfolio spans three core categories — Natural Reclaim Rubber, Synthetic Reclaim Rubber (EPDM & Butyl), and Crumb Rubber — supplying small and medium industrial customers primarily across North-Western India.
The Company operates within the formal recycling and EPR (Extended Producer Responsibility) framework and is registered with the Central Pollution Control Board (CPCB) as a Waste Tyre Recycler and a Producer under the EPR framework, which enables a complementary revenue stream from the monetisation of EPR credits to tyre manufacturers, importers, and brand owners.
Financially, the Company holds a strong competitive position in Uttarakhand and is currently in a multi-pronged expansion mode — adding a second reclaim rubber unit at Bhagwanpur (Unit III), and an entirely new vertical into pyrolysis oil and by-product recovery at Rajkot (Unit II).
The Company is one of only two listed/listing reclaim rubber peers in India — its sole listed industry peer being Lead Reclaim and Rubber Products Limited.
2. Business Model and Revenue Streams
2.1 Revenue Architecture
Horizon Reclaim follows a B2B sales model with primary focus on small and medium industrial enterprises. Dispatches are executed within 3 to 5 days of order receipt, supporting a high-velocity, short-cycle business model. Revenue is generated through two distinct streams:
Core Product Sales — Sale of reclaimed rubber, crumb rubber, and rubber scrap (representing 93.72% of FY26 revenue)
EPR Credit Monetisation — Sale of EPR credits to tyre manufacturers and brand owners (contributing 6.28% of FY26 revenue)
The Company does not enter into long-term customer contracts, instead operating on a transactional/repeat-order basis. Despite the absence of contractual lock-ins, repeat customer ratios remain stable at ~49–55% annually.
2.2 Revenue Bifurcation by Product (FY26)
| Product Segment | Amount (₹ Cr) | % |
|---|---|---|
| Reclaim Rubber (WTR) | 17.51 | 35.43% |
| Reclaim Rubber (202) | 9.78 | 19.78% |
| Rubber Scrap | 6.21 | 12.56% |
| Reclaim Rubber (EPDM) | 5.49 | 11.11% |
| Reclaim Rubber (HR) | 3.48 | 7.05% |
| Reclaim Rubber (FINE) | 2.98 | 6.03% |
| Sale of EPR Credits | 3.10 | 6.28% |
| Iron Scrap | 0.88 | 1.77% |
| Grand Total | 49.42 | 100.00% |
The product mix has broadened materially over FY24–FY26 — the FY24 portfolio was concentrated in three SKUs (WTR, 202, EPDM) and contained zero EPR credit revenue and zero rubber scrap revenue, whereas FY26 includes 6.28% EPR credits and 12.56% rubber scrap, reflecting both regulatory tailwinds and operational diversification.
2.3 Customer & Supplier Concentration
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Top 10 Customer Concentration | 50.03% | 43.21% | 35.20% |
| Total Customers | 78 | 113 | 136 |
| Repeat Customer % | 55.13% | 49.56% | 49.26% |
2.4 Raw Material Sourcing
The Company sources used tyres, scrap tubes, tread peelings, and rubber waste from both domestic dealers across multiple Indian states and through imports from the United States, UAE, Kuwait, Canada, Singapore, and China. In FY26, 7.45% of raw material consumption was through imports (vs. nil in FY24 and FY25), indicating active scaling of supply chain sourcing.
3. Products and Service Portfolio
3.1 Product Categories
The Company manufactures and supplies reclaimed rubber across three principal categories:
(i) Natural Reclaim Rubber — Produced from used tyre casings, tubes, and buffing scrap. Sub-grades include WTR (Whole Tyre Reclaim), HR (High-Resilience), 202, Super Fine, and Fine Reclaim Rubber. End-use applications cover footwear soles, floor mats, tyre base layers, conveyor belts, hoses, gaskets, and moulded rubber goods.
(ii) Synthetic Reclaim Rubber — Includes EPDM Reclaim Rubber (used in automotive weather strips, door seals, roofing membranes, electrical insulation) and Butyl Reclaim Rubber (used in tyre inner tubes, sealants, pharmaceutical stoppers). This category targets premium applications requiring oil, heat, and weather resistance.
(iii) Crumb Rubber — Manufactured from recycled tyres for use in rubberised asphalt road construction, sports surfaces, playground safety flooring, footwear soles, anti-vibration pads, and pyrolysis feedstock.
3.2 Installed Capacity & Utilisation
| Unit | Location | Installed Capacity (MT/annum) | Status |
|---|---|---|---|
| Unit I | Roorkee, Haridwar | 14,100 | Operational |
| Unit III | Bhagwanpur, Haridwar | 9,600 | Construction complete; commercial operations pending |
| Unit II | Rajkot, Gujarat (Pyrolysis Oil) | 36,000 | Substantially complete; not yet operational |
3.3 Capacity Utilisation Trajectory — Unit I
| Particulars | FY24 | FY25 | FY26 |
|---|---|---|---|
| Installed Capacity (MT) | 14,100 | 14,100 | 14,100 |
| Actual Production (MT) | 5,348 | 9,016 | 12,690 |
| Capacity Utilisation | 37.93% | 63.94% | 90.00% |
Capacity utilisation at Unit I has reached 90% in FY26, indicating Unit I is approaching saturation and that the planned commissioning of Unit III (additional 9,600 MT) is essential to support further growth. This is the strongest single operational signal validating the fund deployment plan for additional Plant & Machinery in the Objects of the Issue (₹9.43 Cr).
4. Key Business Strengths
- Near-Saturation Capacity Utilisation at Unit I — Current utilisation at 90% indicates strong demand absorption and validates the timing and necessity of the Unit III expansion funded through the IPO Objects.
- Twin-Revenue Stream Through EPR Credit Monetisation — Registration with CPCB under the Extended Producer Responsibility framework adds a structurally higher-margin and policy-driven income stream (6.28% of FY26 revenue), supplementing core product sales.
- End-to-End In-House Manufacturing with Quality Accreditations — Holds ISO 9001:2015, ISO 45001:2018, ISO 14001:2015, and RoHS certifications, supporting B2B credibility with industrial customers.
- Diversified Application Coverage Across End-Use Industries — Customers span automotive, footwear, sports surfaces, flooring, and construction — reducing exposure to single-sector cyclicality.
- Regulatory Tailwind from Domestic and EPR-Driven Demand — The Indian reclaim rubber market is estimated at ~USD 500 million in FY25 with a projected 8–10% CAGR, supported by EPR recycling mandates ramping toward 100% recycling targets.
5. Future Growth Strategy
- Forward Vertical Integration into Pyrolysis Oil (Unit II — Rajkot) — A 36,000 MT/annum facility on 27,283.62 sq. m of land for production of pyrolysis oil, recovered carbon char, and steel scrap. Leverages existing waste-tyre raw material sourcing networks and aligns with circular economy principles.
- Capacity Expansion Through Unit III (Bhagwanpur) — Addition of 9,600 MT/annum in reclaim rubber capacity (a 68% addition to current operational base), with construction complete and machinery installation funded partly through IPO proceeds (₹9.43 Cr capex earmarked).
- Geographic Penetration into Western and Central India — Strategic expansion of distribution and B2B outreach beyond the existing North Indian concentration into regions hosting established tyre-retreading, footwear, and automotive component ecosystems.
- Product Diversification Through Specialised Reclaim Rubber Grades — Development of application-specific grades — including oil-resistant, thermo-mechanical, and footwear-grade reclaim rubbers — to deepen customer engagement and enhance per-unit value realisation.
- Strengthening ESG and EPR Positioning — Continued investment in traceability, material recovery documentation, and EPR credit generation to position the Company as a preferred supplier under ESG-linked procurement frameworks.
- Balance Sheet De-Leveraging — Use of ₹26.70 Cr (approximately 49% of issue size) toward pre-payment/repayment of outstanding borrowings to reduce the FY26 Debt-Equity Ratio of 1.44 and lower interest costs going forward.
