Mahindra & Mahindra Ltd.

Mahindra Intertrade, a wholly owned subsidiary of Mahindra and Mahindra, has signed a Memorandum of Understanding (MoU) with MSTC (a Government of India enterprise formerly known as Metal Scrap Trading Corporation). The MoU will see the companies undertake a joint initiative to set up India’s first auto shredding facility.

Auto-shredding in India is largely an unorganized activity with vehicles long past their usable life still in use, especially in rural and semi-urban India. Older vehicles are currently dismantled in an unscientific manner, hazardous to the environment. The extent to which the vehicle is recycled is also very minimal, with most vehicular residue making its way into landfills. The proposed facility will be equipped with state-of-the-art, fully automated end-of-life vehicle recycling equipment and will be India’s first such facility. This will go a long way in the efficient recycling of scrapped automobiles.

Given the new stricter norms related to road worthiness of automobiles, a huge number of vehicles are expected to come under the end-of-life category in India. This initiative will not only revolutionise the way automotive scrap is generated and procured in India, but will also help reduce dependence on imports, providing steel mills with a one-stop solution for all their metal scrap related needs.