Eco Recycling has secured Board approval to form a 50:50 joint venture with Electronic Recyclers International, Inc. (ERI), USA, to advance IT Asset Disposition (ITAD) and circular economy solutions. The strategic partnership aims to establish a new entity in India focused on enterprise recycling, resource recovery, and secure data destruction, subject to statutory approvals. This move deepens Eco Recycling's capabilities in the electronic waste management sector by combining resources with a US-based leader in the field.

Joint Venture Structure and Governance

The Board of Directors approved the incorporation of the joint venture company in India with an equal equity split between Eco Recycling and ERI. Governance will be balanced, with the new entity featuring a four-member board comprising two directors nominated by each partner. The Board also sanctioned the execution of definitive agreements, including a Shareholders' Agreement (SHA) and an Operating Agreement, to define the operational framework and rights of the parties involved.

Strategic Focus and Regulatory Compliance

The collaboration targets the growing need for responsible IT asset disposal and material recovery. The agreements ensure operational ring-fencing and clear governance protocols. The disclosures were made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the relevant SEBI Master Circular. The joint venture is pending necessary statutory and regulatory clearances before commercial operations commence.

Eco Recycling Limited’s board is scheduled to meet on July 20, 2026, to consider and approve the formation of a 50:50 joint venture with Electronic Recyclers International, Inc. (ERI), USA. The strategic alliance aims to establish a separate legal entity in India to pursue opportunities in IT Asset Disposition (ITAD), enterprise recycling, and circular economy solutions. This partnership is expected to strengthen the company's ability to serve multinational customers in India and enhance its position in the global circular economy ecosystem.

The board will deliberate on the final execution text of the Shareholders Agreement (SHA) and Operating Agreement for the proposed joint venture. The governance framework provides for equal equity participation and management by both ERI and Eco Recycling . The operational liabilities and business risks of the joint venture will be ring-fenced at the entity level.

Strategic Benefits and Operations

The joint venture will leverage ERI's international expertise, technology, and global best practices alongside Eco Recycling's established infrastructure and regulatory experience in India. The collaboration builds on a longstanding relationship where Eco Recycling has serviced ERI's global customers in the past. The move is anticipated to facilitate the adoption of globally recognized operational standards and expand capabilities in ITAD and enterprise services.

Financial Implications

The initial investment in the joint venture will be governed by the provisions of the Shareholders Agreement to be approved by the board. Subsequent capital contributions, if required, will be determined by the terms of the agreement and applicable laws. The company stated that none of the directors or key managerial personnel are interested in the resolution beyond their directorship or shareholding.

Meeting Details