E-Waste

How to Set Up Refurbished Mobile E-waste Management Business?

The unregulated increase in pollution has resulted in irreversible damage to the environment and the general health of people. Therefore, the Government of India is encouraging the policies of “Sustainable Development” and “Circular Economy.” Also, the government is allowing for new businesses to be set up that aim to reduce the burden of the government to manage and regulate the growing pollution. Mobile Phones constitute the majority percentage of e-waste, with people discarding the phones every 1-2 years. Refurbishing these mobiles is one of the most effective methods to reduce e-waste. This blog will guide the reader through setting up a Refurbished Mobile E-Waste Management Business.

The contributing factors to Refurbished Mobile E-waste Management Business in India

In developing countries like India, there is a lot of possibility and scope for establishing new businesses and creating sufficient market space and revenue from that business. Some of the driving forces that contribute toward the growth of Refurbished Mobile E-waste Management Business are: –

1. Cost control- Various government subsidies and sound financial management by the producers are the most significant driving forces behind the growth of the E-waste Management Business.
2. Process optimisation
3. Advancing the infrastructure
4. Regulating the material consumption
5. Amending the business and revenue model

The life cycle of the Mobile Phone

To know about Refurbished Mobile E-waste Management Business, let’s first understand the life cycle of a mobile phone. A large part of the WEEE (Waste Electrical and Electronic Equipment) contains domestic electronic waste, including mobile phones. The life cycle of a mobile phone proceeds as follows: –

1. Accumulation of raw Materials
2. Manufacturing process
3. Sales
4. Usage
5. Collection of mobile phones after utilisation after which they become WEEE (Waste Electrical and Electronic Equipment)
6. Mostly dumped in landfill
7. If not dumped at a landfill, they are sent for reuse or refurbishment.
8. Extraction of raw material
9. The raw material extracted is ultimately sent to the manufacturing plant.

Market Overview of Refurbished Mobile E-waste Management Business

The Global Refurbished Mobile E-waste Management Business market is estimated to increase from 49.9 billion US Dollars in 2020 to 143.8 billion US Dollars in 2031, growing at a Compound Annual Growth Rate of 10.2% during 2021-2031. Refurbished mobile phone sales now account for almost 11 per cent of the global smartphone market share.

Comprehensive list of the equipment and tools needed for Refurbished Mobile E-waste Management Business in India

To establish any business, one must have proper machinery and tools for its functioning. Below is the list of tools and equipment needed for the Refurbished Mobile E-waste Management Business in India.

1. Soldering iron
2. Soldering station
3. PCB holder/PCB stand
4. Solder wire
5. Multimeter
6. Antistatic mat
7. Magnifier
8. Magnifying lamp
9. Hot air blower
10. Precision screwdriver
11. ESD-safe cleaning brush
12. Tweezers
13. DC power supply
14. Batter booster
15. Battery tester
16. Test JIG box
17. LCD tester
18. IRDA or Infrared workstation
19. Ultrasonic cleaner
20. Jumper wire

Impacts of E-waste on health

Constituents of E-waste	Source of Exposure	Medium of Exposure	Significant Health Hazards on high Exposure
Chromium	Corrosion-resistant films, disks, memory tapes etc.	Dust, air, food and soil	DNA damage, Lungs dysfunction, and Reproductive health
Polychlorinated Bi-Phenyls	Capacitors, lubricants, dielectric fluids, coolants, motors etc.	Soil, dust and food (this may result in bio-accumulation)	Thyroid dysfunction
Polybrominated diphenyl ethers	Fire retardants	Dust, air, food and soil	Thyroid dysfunction
Polychlorinated dibenzodioxins	Combustion by-products	Dust, air, vapour and soil	Thyroid dysfunction
Copper	Wires, PCBs etc.	Dust, air, vapour and soil	Headaches, dizziness, eye irritation, nose, mouth, etc.
Lead	PCBs, bulbs, computer monitors, televisions	Dust, air, vapour and soil	Growth, DNA damage, Mental illness, and Reproductive health
Cadmium	Switches, batteries, computers, connecting semiconductor chips, components, PCBs, Xerox/photocopy machines, monitors, cell phones, etc.	Food, dust, air, vapour and soil	Reproductive health and DNA damage
Nickle	Batteries	Air, dust, food, vapour and soil	Lungs dysfunction and growth
Polycyclic aromatic hydrocarbons	Combustion by-products	Air, dust, vapour and soil	Reproductive health
Mercury	Computer monitors, Thermostats, PCBs, cell phones, sensors etc.	Soil, dust and food (this may result in bio-accumulation)	Growth, DNA damage, Mental illness, and Reproductive health

Process of Getting Authorisation for setting up a Refurbished Mobile E-waste Management Business

The central authorities mandate three licenses for setting up Refurbished Mobile E-waste Management Business. These three are –

• EPR Authorisation for E-waste Refurbished Mobileis enacted as per E-waste (Management) Rules, 2016
• Consent to Establish under Air and Water (Prevention and Control of Pollution) Act
• Consent to Operate under the Air and Water Act (Prevention and Control of Pollution)

These listed authorisations are obtained through the Pollution Control Committee (PCC) of the concerned UT or State Pollution Control Board (SPCB), following a similar procedure. The process includes completing the application with the relevant information. This is followed by an examination of the said application or inspection and, ultimately, a grant of said certificate. The application for authorisation of all three certificates requires a few mandated documents.

Documents needed for EPR for Refurbished Mobile E-waste Management Business

The additional documents given below are mandatory to be submitted along with the application –

1. EPR plan
2. Self-declaration in conformity with Restriction of Hazardous Substance (RoHS)
3. An economic plan for EPR is a must to complete the checklist of documents required for the Refurbished Mobile E-waste Management Business.
4. Certificate copy issued by State Pollution Control Board or Pollution Control Committee of the concerned UT under E-waste (Management & Handling) Rules, 2011 in case of those refurbishers who are operational in India before 01-10-2016

Copy of the certificates and authorisation from the concerned state authorities for publicising various products or for doing the business as given below:

• TIN details
• PAN details
• Incorporation certificate
• Copy Importer Exporter Code in case of importers

• Particulars of proposed awareness programmes and allied initiatives

Agreement document copies with stakeholders (dealers, collection centres, dismantlers, refurbishers, treatment, storage and disposal facilities (TSDFs) etc.)

Documents needed relating to Consent Certificates for Refurbished Mobile E-Waste Management Business

1. Consent to Establish (CTE)is obtained before the refurbishment business is established under the Water&Air (Prevention &Control of Pollution) Act.
2. Consent to Operate (CTO)is obtained for the Refurbished Mobile E-Waste Management Business after the refurbishment business is established under the Water & Air (Prevention & Control of Pollution) Act.

The process of both the consent certificates is authorised under the Air and Water Act, which has a similar process of applying through the official online portal of the concerned Pollution Control Committee of the concerned UT or the State Pollution Control Board. The application must accompany documents/certificates/licenses mandated by the implementation guidelines published by the CPCB (Central Pollution Control Board). After this, the application is assessed by the respective authority. Subsequently, the official government personnel of the authority conduct an inspection of the operational site. The personnel then make the report as per the inspection finding, according to which the certificate is granted.

Additional Documents required for the consent certificate

• The project report
• SSI certificate
• The layout plan/site plan
• Boiler type, fuel used and quantity
• Details on channelisation
• Raw material list with daily MTD/monthly quantity
• Factory/Trade license
• Industry Department Certificate;
• Total open land
• Total constructed area
• DG specifications
• Site plan
• Water usage breakdown
• Authorisation letter
• Effluent/Sewage Treatment Plant flow diagram
• Specifics on air pollution controls
• Product/by-product list with daily MTD/monthly quantity
• Registration proof of unit
• Permission from the state’s groundwater authority.
• Pan card
• The Aadharcard
• Municipality or Industry license
• Water bill

The post-compliance requirement for Refurbished Mobile E-waste Management Business

The operator of the Refurbished Mobile E-Waste Management Business, once obtaining the Consent Certificates from the PCC of the concerned UT or the SPCB, is mandated to follow some post-compliance requirements. This complies with the implementation guidelines published by the Central Pollution Control Board. The guidelines include keeping the record of mobile refurbished as recommended under Form 2 and filing annual returns under Form 3.

The annual returns have all the information on the amount of e-waste handled by the operator of the Refurbished Mobile E-Waste Management Business, which is to be submitted by the refurbisher by June 30 of the following the Financial Year (FY) to which the return relates.

General Business Setup Licenses

The operator of the Refurbished Mobile E-Waste Management Business, to get an authorisation related to an environmental certificate, the business has to acquire general business licenses and authorisation from the related authorities or Ministries. A few of these licenses are: –

Company license

Documents required for establishing the company

• PAN Card
• Address proof such as
  • Passport
  • Election card or Voter Identity Card
  • Ration card
  • Driving license
  • Electricity bill
  • Telephone bill
  • Aadhaarcard
• Residential proof such as
  • Bank statement
  • Electricity bill
  • Telephone bill
  • Mobile bill
• GST registration Certificate
• MoA (Memorandum of Association)
• AoA (Article of Association)

Factory license acquired for Refurbished Mobile E-Waste Management Business

For establishing an operational unit, the operator of the Refurbished Mobile E-Waste Management Business has to list their business under Factories Act. According to the act’s provisions, the operator is directed to get a factory license that the Chief Inspector approves of the Labour Commissioner Organisation. This license is granted once an inspection of the manufacturing site is done as authorised under the Factories Act, 1948.

Documents needed for Refurbished Mobile E-Waste Management Business

The documents that are required for Refurbished Mobile E-Waste Management Business are: –

• Aadharcard;
• Account details;
• Form 1;
• Layout plan/site plan;
• MoA;
• Tax receipt
• AoA;
• List of directors;
• Partnership deed;
• Commencement date;
• Details of hazardous and non-hazardous waste
• Payment receipt;
• Land deeds;
• Consent form from SPCB/PCC.

 

UdyogAadhaar MSME Registration

The Ministry of Micro, Small and Medium Enterprises grant authorisation. For obtaining Micro, Small and Medium Enterprise (MSME) registration, an application form must be submitted online.

Documents needed for MSME registration

• Aadhar Card
• Date of incorporation of a business
• Applicant’sofficial name
• PAN Number 
• Name and type of enterprise
• Details related to employment
• The social category of the applicant
• The NIC Code
• Account details
• The business operations of the enterprise

 

GST Certificate

Document required for GST Certificate

• Bank details
• Address proof
• PAN Card
• MoA
• The Ministry of Corporate  Affairs authorised Incorporation Certificate
• AoA
• Aadharcard of the applicant

Trade license for Refurbished Mobile E-Waste Management Business       

The Municipal Corporation of the state grants the trade license, which depends on the rules and regulations set by the state. This license is required for the Refurbished Mobile E-Waste Management Business. The additional documents required for trade licenses are submitted along with the application.

Documents required for trade license

• Address proof for which electricity bill or water bill can be submitted
• PAN
• Aadhaar card
• Memorandum of Association (MOA)
• Certification of Incorporating (CIN) in case of companies
• Anup-to-date municipal property tax receipt if the ground is owned or otherwise lease document or consent letter of the owner of the property where the business is registered.
• NOC of the owners of the neighbouring property
• Site plan of the office/Layout plan

Import Export Code (IEC) Registration for Refurbished Mobile E-Waste Management Business

Import and Export Code or IEC is the unique 10-digit code that is obligatory for every importer and exporter in India to obtain. IEC is granted by the Director-General of Foreign Trade of The Ministry of Commerce, which does not require filing or renewal. The registration application for the Import Export Code is submitted online along with the authorised documents, bank details and DSC. The authorities then attest the application. After this, the code is generated as a soft copy to the business owner of the Import and Export of Refurbished Mobile Phone.

Documents Required

The documents required for an IEC registration as mandated by the Ministry of Commerce are –

• Copy of cancelled cheque leaf/banker certificate of the current account in the name of the company
• Applicant’s PAN
• PAN card of the company
• Company Incorporation Certificate or partnership deed
• Aadhaar card
• Address proof

Business Plan for setting up Refurbished Mobile E-Waste Management Business

A business plan for Refurbished Mobile E-Waste Management Business is a document framed with a fundamental outlook on the business and all the external and internal fundamentals necessary for establishing a new business. The business plan also includes the scope and nature of the business prospects along with manufacturing, marketing, financial and human resources strategy. 

While enclosing a business plan, the refurbisher must confirm the configuration correctly reflects the scope and objective of the business. The framework of the Business plan for Refurbished Mobile E-Waste Management Business includes: –

1. Business Overview

The business overview comprises the fundamental concept and strategy based on which the refurbished mobile business is based. It also encompasses the long-term and short-term commitments the refurbishers set regarding E-Waste Refurbished Mobile and business growth.

2. SWOT Analysis

SWOT stands for the Strengths, Weaknesses, Opportunities, and Threats. A detailed analysis SWOT comprises the strengths of the refurbishment business and its weaknesses, opportunities, and risks concerning mobile refurbishment. It comprises of strengths of the company, including advantages, skills, and experience in the field of mobile refurbishment or any other factor that can be added as a positive attribute to the business profile of the refurbished plant. In addition, the SWOT analysis also tells the possible weakness of Refurbished Mobile E-Waste Management Business plants. The analysis also describes opportunities in the market that can assist in the growth. At last, it contains the possible thread which can adversely affect the market’s development.

3. Industrial Analysis

Industrial analysis in a business plan includes upcoming market trends and the current standing of the refurbished mobile plant. It may also include a study of the probable competitors that may influence on the general business of the market.

4. Overview of Demographics and Geography

Overview of demographics and geography in a business plan for Refurbished Mobile E-Waste Management plant includes the analysis of the customer base group for refurbished mobile within the specified area. The area is categorised based either on income, occupation, or the location of the refurbished mobile plant.

• Product Analysis

The business plan also includes a detailed description of the refurbished product by the refurbishers at the end of the mobile refurbishing process.

6. Operational Strategy

Operation Strategy for Refurbished Mobile E-Waste Management Businessincludes Human Resource Plan, production analysis, and budgetary plan. This section will include a comprehensive financial proposal for refurbishing units, scrutiny of human resources employed for the organisation, and a memorandum of undertaking with banks.

Refurbishment and Right to Repair

Right to repair give the consumers and users full right over the device they have purchased from the company. The manufacturing company should provide the consumers and the users access to hardware and software tools. The right to repair as a concept for the first time as a consumer right was introduced in the US Court of Law in the antitrust suit against IBM in 1956. Further, it was integrated for the first time into legislation Motor Vehicle Owners’ Right to Repair Act 2012^[1]. This requires automobile manufacturers to give the users access to necessary booklets and information so that they can repair their vehicles. Right to repair allows the establishment of a Refurbished Mobile E-Waste Management Business in the local area that adds to the region’s revenue and creates sufficient employment.

Implications of Right to Repair in India

• Customers will be able to buy their own set of equipment to allow them to fix their devices/gadgets.
• The product’s company will also permit the use of the required software that the consumer needs for repairing/refurbishing the product for a prescribed time.
• Consumers of the product will have the choice of either repairing the gadget/device themselves or to go the company’s repair centre. 
• The company must provide the manual containing the proper instructions for repairing the devices to increase the user’s/consumers’ gadget’s lifetime. 
• Repairs would be affordable.
• Reduced e-waste.
• Organised refurbishing will be possible.
• Planned obsolescence of devices/ gadgets will end.

Conclusion

The refurbished mobiles have proven to benefit not only from the business point of view but also from the point of view of the environment. The reason is that they have mainly contributed towards reducing the e-waste generated from discarded electronic waste. Refurbished Mobile E-Waste Management Business has contributed to this government initiative, along with contributing to the country’s overall revenue.