India’s emerging demolition and recycling sector

India’s demolition and C&D waste recycling industry is growing at a super speed. D&Ri’s editor Leila Steed interviews Mohan Ramanathan, Founder of the Indian Demolition Association (IDA), about the key drivers and challenges affecting this developing sector

As the demolition and construction and demolition (C&D) waste recycling sector begins to explore the myriad of opportunities heading our way as a result of the push towards Net Zero, I caught up with Mohan Ramanathan of the IDA, to learn more about the continuing emergance of the key sector in India. Here, is what he said:

What key factors are currently shaping the emerging demolition and recycling market in India? And how do you see these changing in the near future?

“Demolition as an industry itself is still a new term [in India]. But because of the UK and other Western influences, I hope one day we’ll be considered as an industry.

Here, the recycling market is developing far behind the speed at which demolition is growing. The recycling concept is in the infant stage.

As for the rising demand for demolition: India gained independence nearly 75 years ago from the British, and since then a lot of infrastructure has been built -PSU as we call it, public sector units. These are large steel plants, large power stations and just about every other industrial structure. So, we started from scratch 75 years ago and most of them have now either outlived the technology or outlived their life or their efficiency, and are spewing out carbon dioxide into the air.

Also rising land values, especially in cities like Mumbai, is encouraging the demolition of older structures to make way for taller, more profitable buildings. Today, a square foot of land in Mumbai is costlier than Manhattan!

So, developers demolish and build because the real estate value has doubled or tripled in the last 20 years. They don’t mind spending more on the demolition. They’ll recover the cost because the land value has shot up.

India’s growing middle class and young working population are driving a surge in demand for affordable housing, and it is this that is pushing real estate development further.

Recycled materials from desmantled infrastructure are more expensive in India.

With demolition equipment being manufactured outside of India, the inflated cost of the machinery as a result of importing it, means most contractors are priced out of the market.

ALL PHOTOS: IDA

Safety is lost in India because human lives are not valued as much. Sorry to say that, but that’s it. That’s the reality.

MOHAN RAMANATHAN, Founder and former CEO of the Indian Demolition Association.

Can you tell me about how the regulatory landscape governing demolition and recycling practises in India is changing, and how you expect it to impact industry growth and innovation?

“Here I have to say that we are not governed by strict law. This is a weak point for us because the demolition industry has grown faster than the regulation.

The regulations have to catch up. Before 2016 we didn’t know anything [about recycling materials]. You could throw anything anywhere.

In 2016 they had ambitious plans that every town, every city or 1,000,000 population must set up a plan by end of 2017. But nothing happened.

The Supreme Court in India is now asking the states: have you implemented it? And why not?

The public is quite aware and is driving the change. When there is a large demolition project happening, the public are asking questions: what are you going to do with the waste? And saying: You can’t dump it anywhere.

The public are also on social media. They are well-educated, and well aware of what’s happening in the Western world. They are asking questions, they’re not allowing truckloads to move unless they know where it’s going. This is all, of course, more pressure to do a safe demolition.

But enforcement in India will be difficult because in a developing country the law takes a back seat. In 10 years I’ll be very happy.”

What are the most significant challenges Indian demolition contractors will face in the next three years, and what can they do to prepare?

In the next three years the main challenge is surely competition. More people are getting into this line of work and they will not get the same prices as they got five years ago. So survival may become a challenge.

And those who are also saying they will take the responsibility to recycle, they will be better welcomed.

So, existing companies, they must educate themselves on the rules and regulations of the laws, and they need to stay up to date.

Costing projects could also be a challenge. Contractors may not have priced jobs for recycling, so then they will have to go back and speak to the owner. And the owner will say that they should have priced the project including recycling first and that, because the contractor did not mention it, it's too late. And they won't pay.

Correctly disposing of waste could be an issue, too. If contractors already know how to do it, they will be one up on their competition.

Another thing is affording the latest equipment and technology, which is already a challenge.

The basic reason why the CapEx costs are high is because nobody makes demolition equipment in India. The lack of local manufacturers increases the cost because whatever is made in Europe will be basically four times more expensive.

Plus the cost of maintenance and spare parts which also have to be imported.

Modern technology is more expensive, and this is a big drawback. The business model has to change.

What can contractors do to withstand changes in demand and cost, as well as economical and political?

They must be cost effective, safe and fast. Safety is lost in India because human lives are not valued as much. Sorry to say that, but that’s it. That’s the reality.

Speed-wise, Indian contractors adopt [new technology] very fast. Plus, over the last 15 years, the population has gradually increased and so the market’s opening up to other manufacturers.

It used to take 20 years for a technology in construction to be adopted. It still takes years sometimes.

Also, people must trust. There is no trust in the recycling of materials in India until now. Or, I can go one step further and say: there is a stigma attached to anything recycled.

The classic example is that we have fully recycled wastewater. Millions has been invested in these plants, but nobody wants to use it as drinking water. They think the wastewater which is recycled is still wastewater. That is a mindset in India.

It’s going to take time to bring the technologies connected with recycling.

When we last spoke, we talked about how rising public awareness of Net Zero and sustainability is helping to encourage contractors to adopt better practices. Do you feel that this is starting to happen?

Carbon reduction methods, in both construction and demolition, is all still very low in acceptance.

People talk about it at conferences but… the reality is when you go with a product that says it is a 'no carbon' product, it’s 25% more expensive and so it gets rejected.

It’s still it’s fancy to talk about. It's fancy to say you have knowledge about it and want to put the money on the ground.

It’s slowly coming up – our awareness for net zero type of products to be brought onto the site – but we have a long way to go.

I was in Japan for 10 days and I saw the kind of awareness they have on clean cities. We are far away from that.

In India, the whole ecosystem has to work towards it. I’m hopeful it will change. We keep talking about it in forums, so it may change one day.

Over the next five years, to what extent do you see management practices optimised to raise material recovery rates?

When it comes to recovery rates, I would say that in five to 10 year’s time, at least 25% of the materials will be recycled.

I’ve been asked to set up a pilot plant in one of the number one institutions in India. They want to make a net zero campus as they currently send out 10 truckloads of material every day, and they felt guilty. I’ve been asked to help them set it up and invite entrepreneurs to come and see how it works. This is a small plan but still, it’s a good beginning. It will be ready by the end of this year.

Are there any initiatives or incentives aimed at promoting safer working methods and sustainable practices? When it comes to “the working methods, sustainable practises, our mandate is to promote demolition technologies and promote awareness to recycle.

On the whole, with the demolition technologies, we are quite successful, but on recycling we’re not so successful, so we’re having to tell people about recycling and maybe this is a constant effort, so we’ll keep on doing it and more.

Ageing infrastructure is driving the demand for demolition and decommissioning services ever higher.

In December we plan to have a one day conference with some key speakers. We are going to try and get government people to come.

Do your demolition contractors and recycling facilities actively try and collaborate?

No, they don’t collaborate now because one is not helping the other. Demolition contractors are producing the material, but they don’t want to give it to the recyclers because they charge too much.

What about collaboration between demolition contractors? We know that equipment is very expensive in India. Have you heard of contractors investing in one machine and then sharing it?

Very rare, but they are doing it now and they’re sharing the machine between friendly contractors. It’s happening slowly but in five years from now, most demolition contractors, I believe, will own their machines.

What would the IDA like to say industry leaders outside of Indoa?

The IDA needs to hold hands with mature associations like the NFDC, EDA and NDA and so forth. And in return we can give them the benefit of IDA members.

Also, we want manufacturers from other countries to set up plants in India. Because we are cost effective here. So this will be of great help. ■

There is a stigma attached to anything recycled. The classic example is that we have fully recycled wastwater. Millions has been invested in these plants, but nobody wants to use it as drinking water.