ANNEXURE A

STATEMENT OF POSSIBLE SPECIAL TAX BENEFITS AVAILABLE TO THE COMPANY, THE

SHAREHOLDERS OF THE COMPANY AND ITS MATERIAL SUBSIDIARY UNDER THE APPLICABLE
DIRECT AND INDIRECT TAX LAWS IN INDIA

INVESTORS ARE ADVISED TO CONSULT THEIR OWN TAX CONSULTANT WITH RESPECT TO THE TAX
IMPLICATIONS OF AN INVESTMENT AND CONSEQUENCES OF PURCHASING, OWNING AND DISPOSING OF
EQUITY SHARES IN THE SECURITIES, PARTICULARLY IN VIEW OF THE FACT THAT CERTAIN RECENTLY
ENACTED LEGISLATION MAY NOT HAVE A DIRECT LEGAL PRECEDENT OR MAY HAVE A DIFFERENT
INTERPRETATION ON THE BENEFITS, WHICH AN INVESTOR CAN AVAIL IN THEIR PARTICULAR SITUATION.

STATEMENT OF POSSIBLE SPECIAL DIRECT TAX BENEFITS AVAILABLE TO THE COMPANY AND
SHAREHOLDERS OF THE COMPANY AND THE MATERIAL SUBSIDIARY

I. SPECIAL DIRECT TAX BENEFITS AVAILABLE TO THE COMPANY UNDER THE INCOME TAX ACT,
1961

The statement of tax benefits outlined below is as per the Income-tax Act, 1961 read with Income Tax Rules, circulars,
notifications (“Income Tax Law”), as amended from time to time and applicable for financial year 2023-24 relevant
to assessment year 2024-25. These special tax benefits are dependent on the Company fulfilling the conditions
prescribed under the Income Tax Law. Hence, the ability of the Company to derive the special tax benefits is dependent
upon fulfilling such conditions, which are based on business imperatives it faces in the future, it may or may not choose
to fulfil.

Lower corporate tax rate under Section 115BAA of the Income-tax Act, 1961 (“the Act”): As per Section 115BAA of
the Act as inserted vide the Taxation Laws (Amendment) Act, 2019, with effect from Financial Year 2021-22, 2022-
23, 2023-24 (i.e. AY 2022-23, 2023-24, 2024-25), a domestic company has an option to pay income tax in respect of
its total income at a concessional tax rate of 22% (plus surcharge of 10% and cess of 4%) provided the company does
not avail specified exemptions/incentives/ deductions or set-off of losses, unabsorbed depreciation etc. and claiming
depreciation in prescribed manner and complies with other conditions specified in section 115BAA of the Act.

In case a company opts for Section 115BAA of the Act, provisions of MAT under Section 115JB of the Act would not
be applicable and MAT credit of the earlier year(s) will not be available for set-off.

The option needs to be exercised on or before the due date of filing the tax return in prescribed manner. Option once
exercised, cannot be subsequently withdrawn for the same or any other tax year and therefore, shall apply to subsequent
assessment years. Further, if the conditions mentioned in section 115BAA of the Act are not satisfied in any year, the
option exercised shall become invalid in respect of 155 such year and subsequent years, and the other provisions of
the Act shall apply as if the option under section 115BAA had not been exercised.

The tax expenses are recognized in the statement of profit and loss of for the year ended March 2024 by applying the
tax rate as prescribed in Section 115BAA of the Act. The Company has represented to us that they have opted for
section 115BAA of the Act from the Assessment Year 2022-23 onwards.

II. POSSIBLE SPECIAL TAX BENEFITS AVAILABLE TO THE SHAREHOLDERS

The Company would be required to deduct tax at source on the dividend paid to the shareholders, at applicable rates.
In case of shareholders who are individuals, Hindu Undivided Family, Association of Persons, Body of Individuals,
and every artificial juridical person, surcharge would be restricted to 15%, irrespective of the amount of dividend. The
shareholders would be eligible to claim the credit of such tax in their return of income.

However, as per the provisions of section 194 of the Act, no deduction of tax at source would be required in case of
an individual, where dividend is distributed in modes other than cash and the aggregate amount of such dividends
distributed during the year by the company to the shareholder does not exceed Rs. 5,000.

As per Section 112A of the Act, long-term capital gains arising from transfer of a listed equity share shall be taxed at
12.5% (without indexation) of such capital gains subject to fulfilment of prescribed conditions under the Act. It is
worthwhile to note that tax shall be payable on long-term capital gains exceeding INR 1,25,000. This new tax rate will
apply to securities sold on or after July 23,2024 for the FY 2024-25.

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III. SPECIAL INCOME TAX BENEFITS AVAILABLE TO THE MATERIAL SUBSIDIARY

The Material Subsidiary is incorporated and regulated by the Sharjah Airport International Free Zone (SAIF Zone)
Authority, Government of Sharjah. Sharjah Airport International Free Zone is a No Tax Emirate, accordingly, no
income tax is applicable to Material Subsidiary.

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STATEMENT OF POSSIBLE SPECIAL INDIRECT TAX BENEFITS AVAILABLE TO THE COMPANY AND
SHAREHOLDERS OF THE COMPANY

The Central Goods and Services Tax Act, 2017, the Integrated Goods and Services Tax Act, 2017, the Union Territory Goods
and Services Tax Act, 2017, respective State Goods and Services Tax Act, 2017, the Customs Act, 1962 and the Customs Tariff
Act, 1975 (collectively referred to as “Indirect tax”)

I. STATEMENT OF POSSIBLE SPECIAL INDIRECT TAX BENEFITS AVAILABLE TO THE COMPANY

A. Benefits under The Foreign Trade (Development and Regulation) Act, 1992 (read with Foreign Trade Policy
2015-20)

Remission of Duties and Taxes on Exported Products (RoDTEP)

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme was announced by Government
of India (GOI) on 14th September 2019 to boost exports. The objective of scheme is to refund, currently un-
refunded duties/taxes/levies at the Central, State and Local level, borne on the exported product including
prior stage cumulative indirect taxes on goods and services used in production of the exported product; and
such indirect duties/taxes/levies in respect of distribution of exported products. Under the scheme, rebate of
aforesaid taxes will be given in the form of electronic scrip which could be utilized for payment of Basic
Customs Duty.

B. Benefits of Duty Drawback scheme under Section 75 of the Customs Act, 1962

As per section 75, Central Government is empowered to allow duty drawback on export of goods, where the
imported materials are used in the manufacture of such exported goods. Unlike the manner of granting benefit
under aforesaid FTP schemes, here the main principle is that the Government fixes a rate per unit of final
article to be exported out of the country as the drawback amount payable on such goods.

C. Benefits under the Central Goods and Services Act, 2017, respective State Goods and Services Tax Act, 2017,
Integrated Goods and Services Tax Act, 2017

Export of goods or/ and services under the Goods and Services Tax (‘GST’) law. GST law inter-alia allows
export of goods or / and services at zero rate on fulfilment of certain conditions. Exporters can export under
Bond / Letter of Undertaking (LUT) without payment of IGST and claim refund of accumulated Input tax
credit (‘ITC’). There is also an alternative available to export with payment of IGST and subsequently claim
rebate (refund thereof) as per the provisions of Section 54 of Central Goods and Services Tax Act, 2017. The
Finance Bill 2021 however has inserted suitable provisions stating that the said benefit of exporters to pay
IGST on exports and subsequently claiming rebate thereof would be available only to notified persons, though
the relevant notification in this regard is awaited.

II. SPECIAL INDIRECT TAX BENEFITS FOR SHAREHOLDERS OF THE COMPANY

Shareholders of the Company are not eligible to special indirect tax benefits under the provisions of the Central Goods
and Services Act 2017 (read with Central Goods and Services Tax Rules, circulars, notifications), respective State
Goods and Services Tax Act, 2017 (read with respective State Goods and Services Tax Rules, circulars, notifications),
Integrated Goods and Services Tax Act, 2017 (read with Integrated Goods and Services Tax Rules, circulars,
notifications), The Foreign Trade (Development and Regulation) Act, 1992 (read with Foreign Trade Policy 2015-20),
Customs Act, 1962 (read with Custom Rules, circulars, notifications), Customs Tariff Act, 1975 (read with Custom
Tariff Rules, circulars, notifications) and Special Economic Zones Act, 2005.

III. SPECIAL INDIRECT TAX BENEFITS FOR MATERIAL SUBSIDIARY OF THE COMPANY

There is no indirect tax benefits available to the material subsidiaries of the company

• The special tax benefits discussed in the Statement are not exhaustive and is only intended to provide general
information to the investors and hence, is neither designed nor intended to be a substitute for a professional
tax advice. In view of the individual nature of the tax consequences and the changing tax laws, each investor
is advised to consult his or her own tax consultant with respect to the specific tax implications.

• The Statement is prepared on the basis of information available with the Management of the Company and
there is no assurance that:

• The Company or its shareholders will continue to obtain these benefits in future;

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• The conditions prescribed for availing the benefits have been / would be met with; and

• The revenue authorities / courts will concur with the view expressed herein.

• The above views are basis the provisions of law, their interpretation and applicability as on date, which may
be subject to change from time to time and that department may take a view contrary to that indicated above.

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 SECTION V – ABOUT OUR COMPANY

INDUSTRY OVERVIEW

The information in this section is derived from the report titled “Electronics Refurbishment Industry Report”, dated December
12, 2024 (the “1Lattice Report”), prepared by Lattice Technologies Private Limited (“1Lattice”). We commissioned the
1Lattice Report for the purpose of confirming our understanding of the industry in connection with the Offer. Neither we, nor
any of the BRLMs, nor any other person connected with the Offer has verified the information in the 1Lattice Report. Further,
the 1Lattice Report was prepared based on publicly available information, data and statistics as of specific dates and may no
longer be current or reflect current trends. 1Lattice has used various primary and secondary sources including government
sources as well as international agencies to prepare the report. The 1Lattice Report may also be based on sources that base
their information on estimates, projections, forecasts and assumptions that may prove to be incorrect. 1Lattice has advised that
it does not guarantee the accuracy, adequacy or completeness of the 1Lattice Report or the data therein and is not responsible
for any errors or omissions or for the results obtained from the use of 1Lattice Report or the data therein. Further, the 1Lattice
Report is not a recommendation to invest / disinvest in any company covered in the report. 1Lattice especially states that it has
no liability whatsoever to the subscribers / users / transmitters / distributors of the 1Lattice Report. Prospective investors are
advised not to unduly rely on the 1Lattice Report when making their investment decision. Unless otherwise stated Fiscal refers
to the financial year ended March 31 of that year.

1.1 The global GDP is expected to rise at a CAGR of 4.8% from CY23-28, having grown at a CAGR of 4.0% from
CY18-23

Global growth in CY23 exceeded 4%, despite challenges such as higher interest rates, tighter financial conditions, and
geopolitical tensions, including Russia’s ongoing war in Ukraine, the escalating conflict in the Middle East, and
strained US-China relations marked by sanctions on goods ranging from solar cells to computer chips. GDP growth is
projected to average 4.8% from CY23 to CY28. In comparison, India is expected to sustain the highest growth rate,
with its current year-on-year growth rate at 6.3% in CY23, and is expected to maintain the highest growth rate till
CY28. Rising global GDP increases disposable income, driving demand for cost-effective refurbished electronics as
consumers seek value-oriented technology upgrades.

1.2 Emerging Asia region is expected to have the highest GDP growth rates when compared to other global
economies

Regional variations have resulted in stronger growth rates in certain areas compared to other regions. In comparison,
Emerging Asia is expected to maintain the highest growth rate, with its current Y-o-Y growth rate at 5.2% in CY24E.
This growth is driven by robust domestic consumption in most ASEAN countries and significant public investments
in China and India.

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 Note(s): *Euro area consists of advanced Economies like Germany, France, Italy, Spain, Netherlands, etc. *G7 includes Canada, France, Germany,
Italy, Japan, USA and UK

1.3 World GDP per capita is expected to grow at CAGR of 4.1% during CY23-28 and reach US$ 16,296

According to the International Monetary Fund (IMF), world GDP per capita is expected grow steadily in CY24 and
CY25. It has grown at a CAGR of 3.1% during CY18-CY23 and is expected to grow at a CAGR of 4.1% during CY23-
28 and reach US$ 16,296.

1.4 India’s GDP was at US$ 3.6T in CY23 and is estimated to reach US$ 5.8T in CY28, growing at a CAGR of
10.3% from CY23-28

India is the fifth largest economy in the world and is expected to be the third largest by CY28. As per government
targets, it is expected to reach US$ 7T by CY30. Over the next 10-15 years, India is expected to be among the top
economies due to demand, robust growth in various sectors, and increased private consumption. Indian private
consumption is expected to be driven by an increasing proportion of the male and female working-age population and
a rise in household income.

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 India’s GDP (at current prices) grew from US$ 2.7T to US$ 3.6T between CY18 and CY23 due to robust reforms like
GST, corporate tax revision, and revised FDI limits. As per IMF projections, India’s GDP (at current prices) is expected
to grow at a rate of 10.3% from CY23 to CY28, making it one of the fastest-growing large economies globally.

1.5 India’s per capita income stood at US$ 2.5K in CY23 and is expected to reach US$ 3.9K by CY28

India’s per capita income is expected to rise from US$ 2.5K to US$ 3.9K by CY28 growing at a CAGR of 9.4%. With
increased demand, substantial per capita income growth, and a demographic advantage, India is positioned as a market
with vast growth opportunities.

Over CY23-28, India’s GDP per capita is projected to grow at 9.4% annually, driven by strong manufacturing, youthful
workforce, higher agricultural output, rising consumer spend and robust government spending, making it the fastest-
growing major economy, followed by China (6.0%), the UK (5.2%), the USA (3.6%), and Germany (3.3%). India’s
GDP growth is driven by factors like:

• Rise in population

India’s population was 1.1B in 2000, and grew at a CAGR of 1.2% till CY23 to reach 1.45B; the Indian
population is expected to grow at 0.8% CAGR from CY23 to 1.5B in 2030. India has surpassed China to
become the most populous country in the world in CY23. A rise in India’s population, especially in the
working-age group, is expected to grow GDP by expanding the labour force, boosting productivity, and
increasing consumer demand, driving economic activity.

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 • Demographic dividend

India’s demographic dividend, characterized by a large and youthful workforce, serves as a key growth driver
for GDP by increasing labour supply, boosting productivity, and fostering innovation. This favourable age
structure offers a window of opportunity for accelerated economic growth, provided there is adequate
investment in education, skill development, and employment creation.

• Increase in consumer spending

India is primarily a consumer demand–driven economy, with private consumption accounting for over 60%
of GDP. An uptick in consumer spending typically signals a broader economic expansion. Consumer
spending in India is forecasted to surpass US$ 4T by CY30.

• Government spending

The Indian government has been focusing on capital expenditure, particularly in infrastructure and asset-
building projects. This includes investments in roads, railways, and other public infrastructure, which have a
multiplier effect on the economy.

• Increase in Gross Fixed Capital Formation

According to the Ministry of Statistics and Programme Implementation (MoSPI), GFCF as a percentage of
GDP increased from 29.2% in FY23 to 31.3% in FY24, reflecting a 2% growth. This increase is driven by
both government and private sector investments in productive assets, infrastructure development, and capital
projects, supported by initiatives like ‘Make in India’, ‘Scheme for Special Assistance to States for Capital
Expenditure’, and ‘Scheme for Special Assistance to States for Capital Investment’, etc.

1.6 As of CY23, 15-64 years age group has the highest share of 68% which is expected to grow to 69% by CY30

In CY20, 15-64 years age group comprised of the highest percentage of population at 67%. As of CY23, 15-64 years
age group percentage share has risen to 68% and is further expected to grow to 69% by CY30. The 0-14 years age
group share of the population is on a declining trend with 26% in CY20 and 25% in CY23, and is expected to be 22%
in CY30. The size of India’s workforce is a major competitive advantage as the country tries to become a global design
and manufacturing hub. The establishment of the Ministry of Skill Development and Entrepreneurship, which provides
funding and skill development opportunities to individuals and enterprises, by the government to boost job creation
and economic growth, is also one step in the positive direction.

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1.7 Share of urban population in India as a percentage of the overall population is expected to rise from 37% in
CY23 to 40% in CY29

The share of urban population in India as a percentage of the overall population is expected to rise from 37% in CY23
to 40% in CY29, and India is expected to add over 400M people in urban areas by CY50. This urban shift is fuelling
demand for residential properties, gated communities, and integrated townships, catering to the desire for upgraded
lifestyles and modern amenities. Additionally, there’s a growing focus on sustainability, leading to the development
of eco-friendly and energy-efficient buildings. The rise of smart cities, coupled with digitalization and changes in real
estate preferences, is reshaping the market landscape.

1.8 Average household size in India as of CY23 stands at 4.37 people which is expected to decrease to 4.16 by CY29

The average household size in India as of CY18 stood at 4.55 people and is expected to decrease to 4.16 people by
CY29. In recent decades, India has seen a decline in household size, driven by the rise of nuclear families, spurring
demand in real estate for smaller, independent living spaces.

1.9 Internet penetration in India has increased from 574M users (41%) in CY19 to 821M users (55%) in CY23,
which is expected to cross 1,000M users (66%) in CY30

Internet penetration in India has increased from 574M users (41%) in CY19 to 821M users (55%) in CY23, and is
expected to cross 1,000M users (66%) in CY30. The rapid increase in internet penetration in India can be attributed to
two main factors:

• The widespread adoption of affordable smartphones and mobile data plans, making internet access more
accessible to the masses

• Government initiatives like Digital India, which have focused on improving digital infrastructure and
promoting digital literacy across the country

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1.10 The Indian consumer retail market is projected to grow at a CAGR of 9.5% from US$ 1,048B in FY24 to US$
1,658 in FY29

Indian consumer retail market is projected to grow at a CAGR of 9.5% from US$ 1,048B in FY24 to US$ 1,658B in
FY29, driven by rising disposable income, rapid urbanization and technological advancement with widespread
adoption of smartphone and internet connectivity.

Food and grocery category dominates the share of retail market in FY24 with 65%, followed by appliances and
consumer durables (9%), and apparel and footwear (8%).

1.11 Government initiatives, increasing domestic demand, rise in FDI and skilled workforce are driving the growth
of the manufacturing sector in India

As India strives to become a US$ 35T economy, the role of the manufacturing sector is pivotal in driving the nation
forward. Manufacturing can be further segmented into end-to-end manufacturing and value-added manufacturing.
Value-added manufacturing involves enhancing a product’s worth through additional processing or features. End-to-
end manufacturing encompasses the entire production process, from raw materials to finished product, typically

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 handled by a single company or closely integrated supply chain. With skilled labour cost being lower in India, the
trend of shifting the manufacturing base to India from other countries is on the rise, which is being supported by
government initiatives like ‘Make in India’ and ease of inflow of FDI. Apart from this, businesses adopting China + 1
strategy to reduce risk and mitigate the effects of over-reliance on China has further boosted India’s manufacturing
sector as India stands out as a viable alternative.

1.12 Major investment focus areas of the government are growing e-commerce, digital payments & fintech, fostering
startup environment & promoting Digital India initiative

2.1 Global consumer electronics market

The global consumer electronics market grew from US$ 1,121B in CY18 to US$ 1,190B in CY23, growing at a CAGR
of 1.2% from CY18-23. The muted growth during this period in the consumer electronics market between CY22-23
was primarily driven by the chip shortage in electronics market, global supply chain disruptions, economic uncertainty,
reduction in purchases post-pandemic due to the surge of electronic purchases during the pandemic. The market is a
dynamic and rapidly evolving industry that encompasses a wide range of products such as smartphones, desktops,
laptops, televisions, wearable devices, smart home appliances and other accessories. The global consumer electronics
market is estimated to grow from US$ 1,190B in CY23 to US$ 1,602B in CY28, at a CAGR of 6.1%. Upcoming
growth will be fuelled by advancements in AI, IoT, and machine learning, which require more efficient devices.
Growth in smart and connected devices and product innovation are also expected to drive the consumer electronics
market.

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 The global consumer electronics market is segmented, reflecting diverse regional preferences and economic factors.
In CY23, smartphones dominated as the largest segment, generating US$ 515B (43.3%) in revenue. Personal
Computers (PC) & accessories followed with US$ 177B (14.9%), while televisions ranked third, contributing US$
118B (9.9%) in revenue.

2.1.1 Global Information and Communications Technology (ICT) hardware device market

Information and Communications Technology (ICTs) encompass a wider range of tools than Information Technology
(IT), including various communication technologies such as the mobile phones, computers and supporting accessories.
These technologies enable users to access, retrieve, store, transmit, and manipulate information in digital formats. The
global ICT hardware device market was valued at US$ 693B in CY23 and is projected to reach US$ 924B by CY28,
growing at a CAGR of 5.9%.

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 The ICT hardware device market experienced slow growth from CY18 to CY23, with a CAGR of 1.5%, significantly
influenced by supply chain disruptions and economic uncertainty due to geopolitical conflicts. Persistent supply chain
issues, a residual effect of the COVID-19 pandemic, hindered production and availability, making it challenging for
manufacturers to meet consumer demand. Geopolitical events such as the Russia-Ukraine war and the Israel-Palestine
conflict further created economic uncertainty, leading to reduced consumer confidence and hesitancy in making
significant purchases. Together, these factors contributed to low growth in the market during this period. However,
the market is projected to accelerate at a 5.9% CAGR from CY23 to CY28, driven by increased digitalization, adoption
of advanced technologies, and demand for cloud-based and communication services.

2.1.2 Global PC market

The global personal computer (PC) market, encompassing laptops and desktops, has undergone significant
transformations in recent years, influenced by technological advancements, shifting consumer preferences, and global
events. The COVID-19 pandemic initially triggered a surge in demand as remote work and online education became
prevalent which led to growth during CY20, CY21 and CY22 but witnessed drop in CY23 due to back to office and
economy headwinds in CY23 due to geo-political tensions

Global PC market was valued at US$ 166B in CY23, up from US$ 154B in CY18. The market is steadily growing,
driven by higher disposable incomes, improved internet accessibility, increasing use cases, and a rising preference
among consumers for advanced laptops that offer superior performance and modern design. The global PC market is
expected to reach US$ 210B in CY28, growing with a CAGR of 4.8% from CY23 to CY28.

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2.1.3 Market share of key brands in the Global PC market

The global PC market is characterized by intense competition among leading brands, each striving to capture consumer
demand through innovation and strategic positioning. The market is dominated by several key brands, with Lenovo
leading the pack, accounting for approximately 24% of the market share. HP follows closely behind with 21% share,
while Dell holds approximately 16% as of CY23. Apple (10%) and ASUS (7%) also maintain significant positions.
These brands continue to compete fiercely through innovation, product diversification, and strategic pricing to capture
consumer interest in an increasingly digital world.

2.1.4 Global supply chain

The supply chain of the global PC market is a complex network that spans multiple industries and regions, from raw
material sourcing to the end customer. Key elements include manufacturing hubs in East Asia, where most components
and devices are produced, R&D and IP centres in places like Silicon Valley and Taiwan, and major consumption hubs
in North America, Europe, and growing markets like India. Trading centres and logistics hubs facilitate the smooth
flow of goods across borders, while retailers and distributors play a crucial role in delivering products to consumers
and businesses worldwide. This intricate system is supported by cutting-edge innovation, global trade, and efficient
distribution networks, making the PC industry one of the most dynamic sectors in the world.

The global PC market thrives on the diverse competitive advantages of various countries, each playing a pivotal role
in manufacturing, research, consumption, and trade. Here’s a breakdown of the key contributions and strengths of
major geographies in the global supply chain.

China: Largest global hub for cost-effective PC manufacturing, with integrated supply chains for components like
semiconductors and displays.

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 Taiwan: Leader in semiconductor manufacturing and high-tech components, driven by firms like TSMC and Foxconn.

South Korea: Dominates memory chip and display technology production, led by Samsung and SK Hynix.

United States: Major consumption hub for premium PCs and a global leader in R&D and intellectual property for
hardware and software.

Europe: Significant consumer market with an increasing focus on sustainability and strong protection for intellectual
property, especially in software and telecoms.

India: Rapidly growing consumer market driven by digitalization and demand for affordable PCs. An emerging
manufacturing hub, India is rapidly expanding its role in the global electronics sector under initiatives like “Make in
India” and the Production Linked Incentive (PLI) scheme.

Southeast Asia: Rising demand for budget PCs and gaming hardware, fuelled by increasing internet penetration and
a growing middle class.

Dubai: Dubai excels as electronics trading hub due to its strategic location between Asia, Africa, and MENA,
supported by world-class ports and free trade zones, particularly Jebel Ali Free Zone, offering 0% tax and 100%
foreign ownership. Its robust infrastructure and banking systems enable efficient distribution, making it an ideal re-
export center connecting Asian manufacturers to emerging African and Middle Eastern markets.

Hong Kong: Key global trading hub for PC components and products, leveraging proximity to Chinese manufacturing
centres.

Singapore: Strategic trading centre with advanced logistics, connecting Asian manufacturing hubs with global
markets.

2.1.5 Key growth drivers for PC market

The global PC market is continually evolving, driven by a complex interplay of technological, economic, and social
factors. These key growth drivers shape the industry’s trajectory, influencing everything from product development to
market expansion strategies.

2.2 US consumer electronics market

The United States consumer electronics market stands as one of the largest and most dynamic globally, encompassing
a diverse range of products from smartphones and laptops to smart home devices and wearables. As of CY23, the US
consumer electronics market was valued at US$ 218B, and expected to grow at a CAGR of 4.3% from CY23-28. This
growth is primarily driven by rapid technological advancements, increasing disposable income among consumers, and
a growing demand for smart, interconnected devices.

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 The US consumer electronics market is characterized by its diverse product segments, these segments include
smartphones, tablets, computers, televisions, and dishwashers among others, each experiencing unique growth patterns
and market dynamics. Of the total consumer electronics market in the US, the largest segment is smartphones with a
total revenue of US$ 87B in CY23.

2.2.1 US ICT hardware device market

The US ICT hardware device market within the consumer electronics sector is experiencing a dynamic shift as
advancements in smart technologies and connectivity reshape consumer behaviour. The US ICT hardware device
market was valued at US$ 129B in CY23 and is projected to reach US$ 157B by CY29, reflecting a compound annual
growth rate (CAGR) of 4.1% during the forecast period. This market is characterized by rapid evolution and significant
growth attributed to the rising adoption of smart devices, such as smartphones and laptops. Enhanced wireless
technologies like 5G are facilitating faster and more reliable connections, enabling consumers to utilize these devices
more effectively. The shift towards remote work and digital entertainment has also spurred demand for high-quality
communication tools and video conferencing solutions.

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 Additionally, as consumers increasingly seek integrated ecosystems that allow seamless interaction between devices,
manufacturers are investing in ICT solutions that enhance user experience and interoperability. The ongoing digital
transformation across industries is further propelling demand for ICT products, fostering innovation and enhancing
productivity. As businesses and consumers increasingly rely on digital services, the US ICT hardware device market
is poised for continued expansion, presenting new opportunities for stakeholders and investors alike.

2.2.2 US PC market

The US PC market remains a significant segment within the broader consumer electronics industry, characterized by
its maturity, ongoing innovation, and resilience in the face of mobile device competition. Encompassing desktops and
laptops for both consumer and business use, the US PC market has shown remarkable adaptability over the years.
Despite predictions of decline due to the rise of smartphones and tablets, the market has maintained its relevance
through technological advancements, shifting work patterns, and the increasing importance of computing power in
everyday life. As of CY23, the US PC market was valued at approximately US$ 40B and is expected to grow at a
CAGR of about 4.0% from CY23-28. The stagnation in CY18-23 is attributed to market saturation following an initial
spike in demand during COVID-19, ongoing supply chain challenges, and the semiconductor shortage, which has
further driven the usage of refurbished electronics.

In the US PC market in CY23, laptops account for US$ 32B, while desktops contribute US$ 8B. By CY28, the share
of laptops is expected to grow even further, driven by the growing preference for portability, flexibility in remote and
hybrid work environments, and advancements in battery life and processing power, which have made laptops more
versatile and capable of meeting both personal and professional needs. In the US PC market, consumer make ~40% of
the market and commercial segments contributes ~60% of the market, driven by the rise of remote work, increasing
digital integration in everyday life, and modernization efforts within businesses and the ongoing shift to digital
learning.

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2.2.3 Key growth drivers in US market

The United States PC market, while influenced by global trends, is shaped by a unique set of factors deeply rooted in
the country’s economic, technological, and policy landscape. These drivers reflect the distinctive characteristics of the
US market, including its strong government and defence sectors and emphasis on technological education.

2.2.4 Market share of key brands in US PC market

The PC market in the US is characterized by intense competition among a handful of major brands, each vying for a
larger slice of the consumer and business segments. As of CY23, the market is primarily dominated by five key players:
HP, Dell, Lenovo, Apple, and Acer. In CY23, HP emerged as the leading brand in total PC shipments across the U.S.,
capturing 26% of the market. Dell followed closely with a 25% market share.

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2.3 European consumer electronics market

The European consumer electronics market presents a unique landscape characterized by diverse consumer preferences
across its many countries and a strong emphasis on sustainability and technological innovation. The market is
influenced by strict EU regulations on energy efficiency, electronic waste management, and data protection, which
have spurred the development of more environmentally conscious and privacy-oriented products. European consumers
tend to prioritize quality, design, and longevity in their electronics purchases, leading to a market that balances
premium offerings with practical, long-lasting solutions.

The European consumer electronics market demonstrated robust performance in CY23, reaching a valuation of US$
260B. Projections show a steady growth trajectory with a CAGR of 3.5% from CY23 to CY28. The European
consumer electronics market is similarly segmented, but with distinct characteristics reflecting regional preferences
and economic conditions. Like the US, the largest segment in Europe is smartphones, generating a revenue of US$
92B (35.2%) in CY23. Computers & TV have the second and third largest segment with revenue of US$ 41B (15.7%)
and US$ 35B (13.4%) respectively in CY23.

2.3.1 European ICT hardware device market

In CY23, the European ICT hardware device market was valued at approximately US$ 132B, with a projected
compound annual growth rate (CAGR) of 5.0% through CY28. Key drivers include the expansion of 5G networks, the
rising importance of cybersecurity, and the integration of Internet of Things (IoT) technologies, which are transforming
industries and enhancing user experiences. Additionally, initiatives such as the EU’s Digital Compass 2030 aim to
enhance digital skills and connectivity across member states, further bolstering market expansion.

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2.3.2 European PC Market

The European PC market exhibits unique characteristics that set it apart from its global counterparts. With a strong
emphasis on sustainability, the region has seen a growing demand for energy-efficient and eco-friendly computer
models. This trend is partly driven by EU regulations on electronic waste and energy consumption, encouraging
manufacturers to produce more environmentally responsible products. As of CY23, the Europe PC market was valued
at approximately US$ 39B and is expected to grow at a CAGR of about 3.7% from CY23-28.

In contrast to other markets, Europe has witnessed a notable resurgence in desktop PCs. This trend is attributed to the
region’s robust gaming culture and the increasing need for powerful workstations in industries such as design,
engineering, and scientific research.

Another unique aspect of the European PC market is the strong presence of business-oriented computers. Countries
such as the UK, Germany, and the Netherlands have large corporate sectors that drive demand for enterprise-grade
laptops and desktops, often with enhanced security features to comply with stringent EU data protection regulations.
In the European PC market for CY23, laptops attributed to US$ 31B, while desktops accounted for US$ 8B. By CY28,
the laptop segment is predicted to expand its market share significantly, reflecting a shift in consumer and business
preferences. The revenue from laptop sales is expected to rise to US$ 38B by CY28, while desktop sales are projected
to reach US$ 9B during the same period. The European PC market is primarily driven by the commercial segment,
which accounts for about 60-65% of sales, this dominance stems from robust demand as businesses continue to adapt
to hybrid work and implement regular device upgrades.

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2.3.3 Key growth drivers for Europe PC market

The European PC market is shaped by a unique set of factors deeply rooted in the continent’s diverse cultural,
economic, and regulatory landscape. These drivers reflect the distinctive characteristics of the European market,
including its strong focus on sustainability, data privacy, and cross-border cooperation.

2.3.4 Market share of key brands in Europe PC market

In CY23, six key players dominated the landscape: HP, Dell, Lenovo, Apple, Asus and Acer. Lenovo led the market
in total PC shipments in the Europe, securing a 27% market share, followed by HP with a 26% share.

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2.4 India consumer electronics market size and growth

The Indian consumer electronics market has experienced rapid growth in recent years, driven by rising disposable
incomes, urbanization, and increasing digital connectivity. The industry has seen a surge in innovation, affordability,
and localized product offerings tailored to Indian consumers’ preferences. With a large and young population
embracing technology, the market continues to present significant opportunities for manufacturers and retailers alike.
The Indian consumer electronics market was valued at US$ 63.8B in FY24 and is expected to rise at a CAGR of 12.4%
from FY24-29 to reach US$ 114.4B. India’s consumer electronics market is driven by a growing middle class, rising
incomes, and a large youth population. Government initiatives like Digital India and Make in India, along with rapid
urbanization, boost tech adoption and local manufacturing. The e-commerce boom and improved internet access have
also made electronics more accessible, accelerating market growth.

2.4.1 India consumer electronics market – by product segments

This sector encompasses a wide range of products, including smartphones, televisions, home appliances, kitchen
appliances and personal computing and accessories. As innovation continues to drive product diversification, the sector
remains at the forefront of modern lifestyles and digital transformation. Smartphones dominate the Indian consumer
electronics market, although their share has been declining in recent years. This reduction has been largely offset by
the growth of PCs.

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2.4.2 India ICT hardware device market

The India ICT market, valued at US$ 43B in FY24, is set to expand at a robust compound annual growth rate (CAGR)
of 11.9%, reaching US$ 75B by FY29. This rapid growth is driven by the country’s accelerated digital transformation,
underpinned by the creation of a dynamic and evolving information technology landscape. Government policies
promoting digital adoption across industries are fuelling demand for ICT hardware, software, and services while
increasing connectivity and digital capabilities are laying the foundation for a resilient digital infrastructure. Key
technological advancements in 5G, IoT, AI, and cloud computing, supported by the government’s strategic initiatives,
are further propelling the sector’s expansion, positioning ICT as a critical engine for India’s economic growth and
innovation.

2.4.3 India PC market is expected to grow at a CAGR of 11.9% from FY24 to FY29

The Indian PC market, encompassing desktops and laptops, has witnessed significant evolution in recent years. Driven
by increasing digital literacy, the government’s push for a digital economy, and the growing need for computing
devices in education and business sectors, the market has shown resilience and potential for growth.

While facing competition from smartphones, the PC segment has found renewed relevance, particularly in the wake
of remote work and online learning trends. The Indian PC market reached US$ 8.2B in FY24, further expected to grow
with a CAGR of 11.9% from FY24 to FY29.

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2.4.4 India PC market growth is primarily driven by laptops

The Indian PC market has undergone significant shifts in recent years, with a notable transition from desktop
dominance to increasing laptop adoption. While desktops have traditionally held a strong position, especially in
business and government sectors, laptops have gained substantial ground due to their portability and improving
performance.

Indian PC market has grown at a CAGR of 14.3% between FY19 and FY24. Laptops are projected to grow at 14.9%
over the next five years, reaching US $12.6B by FY29. The Indian PC market exhibits a diverse array of pricing
segments, reflecting the country’s wide-ranging economic demographics and varied computing needs. From budget-
friendly options catering to first-time buyers and students, to high-end machines targeting professionals and
enthusiasts, the market stratification mirrors India’s complex socio-economic landscape.

The market spans from ultra-affordable devices priced at INR 10,000-20,000 (US$ 120-240), targeting rural areas and
government digital inclusion initiatives, to high-end machines exceeding INR 1,00,000 (US$ 1,200) for tech
enthusiasts and professionals. Between these extremes lie the entry-level (INR 20,000-35,000), mid-range (INR
35,000-60,000), and premium (INR 60,000-1,00,000) segments, each serving distinct consumer groups from first-time
buyers and students to small businesses and power users. Notably, the entry-level and mid-range segments, particularly
in the INR 30,000-50,000 (US$ 360-600) bracket, emerge as the most popular in India. This price range strikes a
balance between affordability and performance, appealing to the country’s expanding middle class and cost-conscious
professionals.

Despite the dominance of more affordable options, the premium and high-end segments are witnessing growth,
especially in urban areas, signalling the evolving aspirations and increasing purchasing power of certain consumer
groups in India’s rapidly digitalizing economy.

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Retail e-commerce is cutting into offline sales channels in the Indian PC market

Two dynamic sales channels characterize the distribution landscape of the Indian PC market. Offline retail, which
accounted for 85% of all sales in FY19, decreased to 73% by FY24. This decline has been offset by retail e-commerce,
which saw a 12% point increase in its share during the same period.

Indian PC Market personal demand expected to outgrow business demand by FY29

The Indian PC market’s personal demand has grown significantly over the past five years from 37% of the total market
to 46% currently. Personal demand is expected to continue increasing, reaching 53% of the overall market by FY29.

Key growth drivers

The Indian PC market is experiencing robust growth, driven by a unique combination of government initiatives,
technological advancements, and socio-economic factors that are transforming the country’s digital landscape.

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14M PC were sold in India compared to 66M in US in CY23

The global PC market presents a dynamic landscape with significant variations in sales volumes across major regions
and countries. The United States, India, and China stand out as key players, each with distinct market characteristics
shaped by their economic development, population size, technological infrastructure, and cultural factors. In CY23,
approximately 66M PCs were sold in the U.S., while 41M units were sold in China during the same period. In India,
PC sales reached 14M units in CY23.

India PC penetration is at 75-95 per thousand population, which is very low compared to advanced countries

Per capita PC penetration is a key indicator of a nation’s digital readiness and technological adoption. India currently
has 75-95 PCs per thousand people, compared to developed countries such as US (750-800) and China (300-350)
highlighting the potential for growth in this sector.

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 HP leads the Indian PC market with 32% share

The Indian PC market presents a dynamic and competitive landscape, characterized by a mix of global tech giants and
emerging local players vying for dominance. Key brands such as HP, Dell, Lenovo, and Acer dominate the market,
each vying for a larger share through innovations, competitive pricing, and expanding product portfolios. HP leads the
market with a strong presence in both consumer and enterprise segments, while Lenovo and Dell closely follow,
leveraging their global reputation and local manufacturing capabilities. As of CY23, HP captured 32% of market share
in the Indian PC market, followed by Lenovo holding 17% share.

3.1 Global used & refurbished electronics market grew at a CAGR of 4.1% during CY18-23 reaching a value of
US$ 207.4B in CY23

The global used and refurbished electronics market comprises of electronics that are either resold ‘as-is’ (which are
classified as used for the purposes of this report) or after being refurbished. Unlike electronics that are sold ‘as-is’,
refurbished electronics undergo thorough inspection and repairs, ensuring they meet certain standards before resale.
This market spans a range of electronics, from smartphones, laptops, and desktops to home and kitchen appliances,
televisions, office equipment, cameras, and video game consoles. The Electronics refurbishment industry is uniquely
placed to grow even in downcycles of economic growth as it serves the replacement demand of new devices with
affordable solutions

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 The global used and refurbished electronics market grew from US$ 169.9B in CY18 to US$ 207.4B in CY23, at a
CAGR of 4.1%. By CY28, the market is projected to reach US$ 334.8B, growing at a 10% CAGR as consumers and
industries increasingly prioritize cost-effective solutions. Within this, the global refurbished electronics segment grew
from US$ 67.8B in CY18 to US$ 108.8B in CY23, at a CAGR of 10% and is expected to grow at 16% CAGR over
CY23-28 reaching US$ 232.7B in CY28.

The demand for refurbished electronics is driven by various factors, including accelerated internet connectivity, access
to artificial intelligence and digital access, shift towards environmentally sustainable products, shift towards digital
economy including education and healthcare, affordability and cost effectiveness. Demand for high quality, affordable
refurbished electronics is on the rise in emerging and developed markets.

3.1.1 Global used & refurbished PCs market is expected to grow at a CAGR of 11% during CY23-28, reaching a
value of US$ 57.4B in CY28

PCs play a vital role in the global used & refurbished market. Refurbished PCs offer comparable performance and
aesthetics to new models while costing less than half the price. This is achieved through the replacement/repair of
hardware and software components during the refurbishment process. Additionally, cosmetic enhancements are made
to ensure that refurbished PCs have a like-new appearance. The global refurbished PCs market grew from US$ 9.7B
in CY18 to US$ 14.4B in CY23, reflecting an 8% CAGR, & is expected to grow at 22% over CY23-28 reaching US$
38.3B. By CY28, the global used & refurbished PCs market is projected to reach US$ 57.4B, with an impressive
CAGR of 11%, as more consumers seek cost-effective options without compromising on performance. Increasing
consumer acceptance of refurbished PCs has been a key driver, as these devices provide a near-new experience at a
lower price point. Advancements in refurbishment techniques and better product quality have further supported this
trend.

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3.1.2 Global open box PCs market grew at a CAGR of 3% during CY18-23, to reach a value of US$ 4.2B in CY23

Open box refers to PCs that have been unsealed and returned within the warranty period. These products are typically
offered at a discounted price compared to brand-new models, making them an attractive option for budget-conscious
consumers. Despite being returned, open box PCs maintain the same performance standards as new units, as they have
generally been used for a limited time and are thoroughly inspected before resale. This category provides an excellent
opportunity for customers seeking high-quality electronics at a more affordable price point. Global open box PCs
market is expected to grow at a CAGR of 8% during CY23-28 reaching a valuation of US$ 6.3B.

3.1.3 Global used & refurbished premium smartphones market grew at a CAGR of 9% during CY18-23, and is
expected to grow at a CAGR of 12% during CY23-28

The global market for premium flagship smartphones is integral to the refurbished sector. Refurbished smartphones
offer the same high-quality features as their new counterparts but at a significantly lower price point. These devices
undergo rigorous testing and quality checks before being sold, ensuring they meet performance standards.
Additionally, they typically come with a warranty, making them an appealing option for consumers seeking value
without compromising on quality. This combination of affordability and reliability positions refurbished smartphones
as a viable solution.

The global used and refurbished premium smartphone market is poised for strong growth, expected to reach US$
193.7B by CY28, driven by a 12% CAGR. Refurbished premium smartphones are increasingly appealing to

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 consumers, offering access to high-end devices at a fraction of the original price. With improved refurbishment quality,
these devices provide a premium experience, making them an ideal choice for cost-conscious buyers. As demand for
premium smartphones continues to rise, the refurbished segment is set to capture a larger share of the market, fueled
by the growing consumer preference for value-driven, high-performance options. With growing awareness and
enhanced refurbishment quality, the market is transitioning from rapid early growth off a smaller base to sustained
momentum. Fueled by a significant surge in premium smartphone adoption over the past five years, the market is now
poised for consistent expansion, particularly as emerging regions present robust growth opportunities that reinforce its
long-term resilience.

3.1.4 Global high-value electronics spare parts market expected to grow at a CAGR of 9% during CY23-28, reaching
a value of US$ 5.6B by CY28

The demand for high-value electronic spare parts, such as hard drives and graphics cards, is rising due to increased
consumer electronics demand and technological advancements. Many consumers are opting to upgrade these
components in their desktops and laptops instead of purchasing new systems, as this approach enhances performance
and offers a cost-effective and eco-friendly solution. Global high-value electronics spare parts market expected to
grow at a CAGR of 9% during CY23-28, reaching a value of US$ 5.6B by CY28.

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3.1.5 Global sustainability goals to drive refurbishment

The United Nations Sustainable Development Goals (SDGs) were established in CY15 as a universal framework
designed to address pressing global challenges such as poverty, inequality, and climate change, aiming for a sustainable
future by CY30. These goals provide a comprehensive roadmap for sustainable development across various sectors,
including the refurbishment industry.

UN Sustainable Development Goals and refurbished electronics

As global efforts to mitigate climate change intensify, the refurbishment industry plays a key role in advancing
sustainability. By extending product life cycles, refurbishment reduces the need for raw material extraction and new
production, cutting emissions and conserving energy. This aligns with UN Sustainable Development Goals (SDGs)
numbered 9, 11, 12, and 13 out of the total 17 SDGs, promoting responsible consumption and reducing e-waste

Global COP28 Commitments

The countries around the world are placing greater focus on Environmental, Social, and Governance (“ESG”) standards
as sustainability becomes a global priority. One pressing issue is the growing volume of electronic waste (e-waste),
with only a small portion currently being recycled. COP28 marked a pivotal moment in global climate action, with
nearly 200 countries committing to ambitious targets aimed at limiting global temperature rise to 1.5°C. Key
commitments are:

• Commitment to tripling renewable energy capacity by CY30

• Targeting 11,000 GW of global renewable capacity

• Achieving net-zero emissions by CY50 across key sectors like energy, industry, and transport.

These goals are intended to transform industries and economies towards more sustainable practices by reducing
reliance on carbon-intensive processes, minimizing waste, and promoting energy efficiency. Among the most critical
outcomes is the Loss and Damage Fund, which seeks to support climate-vulnerable nations in dealing with the
irreversible impacts of climate change. This fund signals a broader acknowledgment of the global disparities in climate
vulnerability and aims to ensure that sustainable development includes all nations, particularly those hardest hit by
climate impacts.

The COP28 commitments underscore the necessity of resource efficiency, innovation, and reduced carbon emissions
across industries. This includes not just energy and transport but also the management of material resources,
encouraging a shift toward reuse and extending product lifecycles making reuse the best form of recycling. The push
for sustainability naturally aligns with principles that reduce the need for raw material extraction and cut down on

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industrial waste and emissions. By doing so, industries can reduce the environmental burden of production and meet
global climate targets.

Key commitments & initiatives by major economies are as follows:

Total global e-waste generation, recycling and targets for recycling and reduction

The world is undergoing a significant digital transformation, driven by technological advancements that are profoundly
altering the way we live, work, learn, socialize, and conduct business. This digital revolution has led to the proliferation
of electronic devices, including not only computers and smartphones but also household appliances, e-bikes, health
monitors, environmental sensors, and energy-saving equipment like LEDs and photovoltaics. As a result, global
electronic waste (e-waste) has surged. In CY22, the global generation of e-waste reached a record ~60B kilograms
(kg), translating to an average of ~10 kg per capita per year. This marks a substantial increase from ~35B kg in CY10,
this rise is driven by the growing interconnectivity of devices and the increasing electronification of both urban and
remote areas.

Despite the rising volume of e-waste, the recycling rate remains a critical concern. In CY22, only ~20% of the
generated e-waste was formally collected and recycled in an environmentally sound manner. While the amount of
formally collected and recycled e-waste has increased from ~8B kg in CY10 to ~14B kg in CY22, this growth is
significantly outpaced by the rate of e-waste generation. The disparity is driven by factors such as technological
progress, higher consumption rates, limited repair options, short product lifecycles, and inadequate e-waste
management infrastructure. Refurbishing electronics offers a pricing coupled with extension of useful life solution,
helping to reduce e-waste by extending the life of devices,

Recycling targets: Countries worldwide are setting ambitious targets and implementing various initiatives to tackle
the growing challenge of e-waste. These targets aim to improve recycling rates, enhance waste management
infrastructure, and promote the principles of a circular economy. Key initiatives across the primary regions are:

Circular economy – reuse, repair and recycle

A circular economy minimizes waste and maximizes resource use by promoting reuse, recycling, refurbishing, and
remanufacturing. Unlike the traditional linear economy, which follows a “take-make-dispose” model, the circular
economy ensures that products and materials stay in use for as long as possible, reducing waste, conserving natural
resources, and lowering environmental impact. In the electronics industry, refurbishment plays a key role in this system
by extending the life of devices and minimizing the need for new manufacturing.

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 By refurbishing and reintroducing electronics into the market, the demand for raw materials is reduced, and electronic
waste is diverted from landfills. This contributes to more sustainable consumption and production practices, aligning
with the broader goals of the circular economy. Through refurbishment, the environmental footprint of electronics is
lessened, and valuable resources are kept in use, supporting the shift away from a disposable culture. The refurbished
electronics market offers a value proposition for ESG wherein the environmental value is created by reusing and re-
cycling parts which avoids emissions and material extraction. Further, the refurbishment industry also creates job
opportunities for skilled and unskilled labour.

3.1.6 Carbon footprint impact of ‘buy vs refurbish’ of key electronics

A new laptop generates ~1,200 kg CO2e, with 80% of emissions coming from manufacturing. This includes emissions
from parts replacement, energy use in refurbishment facilities, and transportation. By choosing a refurbished laptop,
consumers avoid ~250-330 kg CO2e, demonstrating a major reduction in carbon emissions.

Refurbishing laptops significantly reduces the demand for raw materials and energy-intensive production, both of
which are major contributors to a new laptop’s carbon footprint. Since production accounts for about 80% of the
emissions associated with a new laptop, refurbishing avoids these emissions entirely. Instead, only spare parts are
produced, which has a much smaller environmental impact.

3.1.7 Product & service benchmarking of key global players

The major refurbishing companies globally are Electronics Bazaar, CertiDeal, Close the loop, Gazelle, MusicMagpie

3.2 In CY23, used & refurbished electronics market in USA was valued at US$ 54.1B and is expected to grow at a
CAGR of 5% during CY23-28

The used and refurbished electronics market in the USA grew from US$ 44.8B in CY18 to US$ 54.1B in CY23,
expanding at a CAGR of 4%. It is expected to reach US$ 70.2B by CY28, continuing its steady growth. As refurbished
devices become more widely accepted for their quality and performance, they are increasingly seen as a smart
alternative to buying new, contributing to the market’s sustained momentum.

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3.2.1 Used & refurbished PCs market in USA was US$ 10.1B in CY23, expected to grow at a CAGR of 8% during
CY23-28

The used and refurbished PCs market in the USA grew from US$ 6.9B in CY18 to US$ 10.1B in CY23, reflecting a
robust CAGR of 8%. This market is anticipated to reach US$ 15.1B by CY28, growing at an 8% CAGR. Used PCs
are generally pre-owned devices sold in their existing condition, often without any upgrades or warranties, while
refurbished PCs have undergone testing, repairs, and quality assurance to ensure they meet specific performance
standards. The refurbished segment, which boasts an impressive CAGR of 18%, is expected to drive market growth,
reaching US$ 9.7B by CY28. As consumers increasingly seek cost-effective and reliable alternatives to new devices,
the demand for refurbished PCs continues to strengthen. Enhanced refurbishment standards and affordability are key
factors that will sustain the appeal of refurbished PCs, positioning them as a preferred choice over new models in the
coming years.

3.2.2 In CY23, used & refurbished PCs market in USA is dominated by organised players having a share ~75%,
whereas unorganised covers the remaining ~25%

Organized players refer to companies which are registered with the Secretary of State, or a similar office of the state
government, or the office of the local county clerk, and provide invoices. The used and refurbished PCs market in the
USA has major organized players such as Electronics Bazaar, Gazelle, and Newegg etc. along with organized mom-
and-pop stores capitalizing on regulations such as right to repair who made up ~75% of the market in CY23, up from
~60% in CY18. The market while primarily organized is very largely fragmented with no player capturing >5% of the
market. There are numerous small-scale businesses being set up in the wake of a favorable regulatory environment

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 and growing demand for used and refurbished electronics. As the market expands to an expected US$ 15.1B by CY28,
the share of organized players is projected to grow even further, capturing ~90% of the market. This shift reflects the
growing trust in organized platforms that offer higher quality, warranty, and customer assurance, as opposed to
unorganized sellers.

3.2.3 Share of used and refurbished PCs in the USA has gradually increased from 17% in CY18 to 20% in CY23,
and expected to reach 24% in CY28

The share of used and refurbished PCs in the USA has gradually increased from 17% in CY18 to 20% in CY23. This
slow and steady rise in the acceptance of refurbished devices reflects a growing consumer preference driven by cost
savings and increasing awareness of sustainability. While new PCs still represent majority of the market, the demand
for used and refurbished models is consistently expanding, indicating a meaningful shift in consumer behavior

3.2.4 In CY23, used & refurbished premium smartphones market in USA was US$ 27.8B growing at a CAGR of 5%
during CY18-23

The USA’s used & refurbished premium smartphone market is primed for significant growth, with a projected CAGR
of 6%, expected to reach US$ 37.6B by CY28, up from US$ 27.8B in CY23. Consumers are increasingly drawn to
refurbished premium models, seeking high-end smartphones at a fraction of the original price. Enhanced refurbishment
techniques now restore devices to varying conditions, from “good” to “excellent,” providing a range of price points

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 for different budgets. This variety, combined with the promise of near-flawless, fully tested devices, is driving the
demand for premium smartphones without the hefty price tag, propelling the market’s future growth.

3.2.5 Economic value proposition of refurbishing

The refurbishment industry offers a compelling economic value proposition by merging environmental sustainability
with cost-effectiveness.

• Refurbished devices, such as mobile phones and laptops, are typically priced lower than new products,
making them accessible to a wider audience.

• The refurbishment sector conserves resources while creating highly skilled jobs, enhancing workforce
capabilities, and maximizing production capacity. According to the National Recycling Coalition, recycling
generated 1.1M jobs and US$ 37B in annual payroll in the United States.

• Refurbishing electronics dramatically cuts the carbon footprint by averting the energy-intensive processes
required to manufacture new devices. This approach not only conserves valuable resources but also plays a
pivotal role in mitigating greenhouse gas emissions, driving forward the sustainability agenda in the tech
industry.

Companies like Apple exemplify the economic value of refurbishment by merging sustainability with cost-
effectiveness. In CY23, Apple diverted nearly 12.8 million devices for reuse, showcasing how refurbishment extends
product lifecycles and enhances accessibility. Their trade-in & zero-waste programs have prevented over 3M metric
tons of waste from ending up in landfills, reinforcing their commitment to reducing e-waste. By refurbishing and
reselling devices at lower prices, Apple conserves resources and lowers the environmental impact of each device,
making premium technology more accessible to a broader audience.

The resources needed to create one new laptop amount to 1,200 kg of mined and consumed earth materials and 250-
330 kg of CO2e is emitted during the manufacture of a new laptop. By opting for refurbished Laptop, not only is
resource consumption reduced, but e-waste from disposed laptops which is typically disposed off in landfills is also
avoided. E-waste in landfills can have several negative impacts on soil and surrounding areas such as contamination
of groundwater, disruption of local ecosystems, degradation of soil quality leading to a decline in biodiversity in the
area. Further, the refurbishment industry also creates job opportunities for skilled and unskilled labour. Ultimately, the
refurbishment industry offers significant benefits for consumers, manufacturers, and the environment, highlighting its
vital role in promoting sustainable practices and driving economic growth.

Value proposition of refurbishment vs scrap of old devices

The refurbishing players offer better payouts, easier processes, secure data handling, and are environmentally friendly.
In contrast, selling to scrap dealers results in lower returns, minimal product assessment, potential data security risks,
and environmental concerns due to improper recycling practices

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 Value proposition of buying refurbished vs new devices

The major comparison factors between the refurbished devices and new devices are price point where the refurbished
devices are nearly 40-50% less when compared to the new ones, The quality and condition, environmental impact,
warranty & customer support and availability of the goods which can be an issue in both refurbished devices and new
devices as well.

3.3 In CY23, used and refurbished electronics market in Europe was valued at US$ 62.2B and expected to grow at
a CAGR of 7% during CY23-28

The European used and refurbished electronics market has shown steady growth over the past few years, driven by
increasing consumer demand for cost-effective and sustainable technology options. In CY18, the market was valued
at US$ 57.3B and has since grown to US$ 62.2B in CY23. This expansion is projected to continue, with the market
expected to reach US$ 88.7B by CY28, growing at a CAGR of 7%. This trend reflects a shift towards circular economy
practices and the rising popularity of refurbished electronics in Europe.

The French government’s anti-waste law mandates a “repairability index” for products like smartphones and laptops,
scoring them from 1 to 10 based on ease of repair, availability of spare parts, and more. This aims to promote
transparency and encourage the use of repairable, sustainable electronics. Starting in 2024, France will introduce a
durability index to complement the repairability index, assessing the overall robustness and longevity of products.
France has introduced legislation to reduce the environmental footprint of digital technology. This mandates that 20%
of IT devices bought by organisations need to be refurbished, with a target of 40% by 2040. The legislation is even
more stringent in the public sector, targeting an increase of up to 50% by 2025. Similarly, The Irish Government, under
its “Buying Greener” Green Public Procurement Strategy and Action Plan, aims that by 2025, at least 80% of newly
procured ICT end-user products will be either refurbished or will meet other environmental standards. These measures
align with the EU’s broader circular economy goals under the European Green Deal, encouraging sustainable
production and consumption practices across Europe.

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3.3.1 Used & refurbished PCs market in Europe expected to grow to US$ 13.6B by CY28, growing at a CAGR of 8%
during CY23-28

The European market for used and refurbished PCs has experienced notable growth, reflecting increasing consumer
interest in more affordable and sustainable laptop options. In CY18, the market was valued at US$ 7.5B, with US$
4.6B attributed to used PCs and US$ 2.9B to refurbished ones. By CY23, the total market value increased to US$
9.1B, with refurbished PCs contributing US$ 4.3B. This market is projected to grow further, reaching US$ 13.6B by
CY28, driven by a CAGR of 8%, with refurbished PCs dominating the segment.

3.3.2 In used and refurbished laptop market in Europe, organized players are expected to dominate ~90% of the
market by CY28

The organized market refers to players which are registered with the respective national bodies & provides invoices.
The used and refurbished laptop market in Europe is undergoing a significant shift towards organized players such as
Electronics Bazaar, Back Market, MusicMagpie, Vendi and CertiDeal, along with various mom and pop stores who
are expected to occupy ~90% of the market by CY28, up from ~60% in CY18. However, this market remains
fragmented with no player occupying >5% of the market and large number of small-scale outlets with limited reach
and refurbishment capacity.

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 This trend reflects the growing preference for standardized, reliable refurbishment processes, leaving the unorganized
sector with only ~10% by CY28. The market itself is also expanding, projected to grow from US$ 7.5B in CY18 to
US$ 13.6B in CY28, driven by a CAGR of 8% between CY23-28. Factors such as consumer demand for quality
assurance and environmental considerations are contributing to this shift. The unorganized sector, once dominant, is
rapidly shrinking as the market professionalizes.

3.3.3 Penetration of used and refurbished PCs in Europe grew from 16% in CY18 to 19% in CY23, with a projected
rise to 22% by CY28

The penetration of used and refurbished PCs in Europe has seen a steady increase from 16% in CY18 to 19% in CY23,
with a projected rise to 22% by CY28. This shift reflects a growing acceptance of refurbished devices, likely driven
by cost savings and environmental concerns. While new PCs still hold the majority, the demand for used and
refurbished models is gradually expanding. The trend indicates a slow but consistent change in consumer behaviour
favouring refurbished electronics.

3.3.4 Used and refurbished smartphone market in Europe expected to grow from US$ 34.4B in CY23 to US$ 57.4B
in CY28, growing at a CAGR of 11%

The used and refurbished smartphone market in Europe is projected to grow significantly from US$ 30.8B in 2018 to
US$ 57.4B by CY28. The market has grown modestly between CY18 and CY23, with a CAGR of 2%, reaching US$

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 34.4B in CY23. However, faster growth is expected between CY23 and CY28, with a projected CAGR of 11%. By
CY28, the refurbished smartphone segment is expected to dominate with US$ 42.7B, while used smartphones will
make up US$ 14.7B. This reflects a rising demand for more affordable and sustainable smartphone options across
Europe.

3.3.5 Economic value proposition of refurbishing

The refurbishment industry is crucial for promoting a circular economy that emphasizes sustainability and efficient
resource use. The InvestEU program (CY21-27) prioritizes investments in companies dedicated to product durability,
repair, and reuse. This focus is expected to enhance competitiveness, drive innovation, and stimulate economic growth,
with estimates suggesting the creation of 700K jobs in the EU by CY30. By designing products for longevity and
circular use, businesses can not only foster innovation across various sectors but also contribute to environmental
sustainability.

CertiDeal, founded in 2015, addresses e-waste by combining refurbishment and sales, ensuring high-quality devices.
By extending smartphone lifespans, it has prevented 7.5M tons of CO2-equivalent emissions through ~124K second-
hand phones sold. Recognized by investors for its environmental impact and market potential, CertiDeal highlights
the financial viability of sustainable practices in the tech industry.

This transition will provide consumers with more durable products, improve their quality of life, and deliver long-term
cost savings, making refurbishment a compelling economic proposition. Additionally, incorporating repair and reuse
into economic investments and recovery plans can help establish a resilient economy.

Scrap sale vs sale to refurbished option analysis

The refurbishing and scrap markets for used electronics in the European region differ across key parameters.
Refurbishing companies offer higher prices, enhanced customer experiences, and environmental benefits through
device reuse. They also implement data security measures and provide trade-in incentives. In contrast, scrap dealers
tend to offer lower prices, operate through traditional channels that can negatively affect customer experience, and
focus primarily on material extraction rather than device recycling.

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 Buy ‘new’ vs ‘buy refurbished’ option analysis

Refurbished devices in the European region offer significant savings of up to 40% for budget-conscious consumers,
along with in-house warranties compared to brand-specific warranties for new devices. While refurbished options
provide comparable performance to new devices, the latter feature the latest technology. Choosing refurbished devices
helps reduce e-waste, whereas new devices contribute to increased environmental impact

3.4 Used & refurbished electronics market in India

The secondary electronics market in India comprises of electronics that are either resold ‘as-is’ (which are classified
as used for the purposes of this report) or after being refurbished. Unlike electronics that are sold ‘as-is’, refurbished
electronics undergo thorough inspection and repairs, ensuring they meet manufacturer / OEM’s standards before
resale. This market spans a range of electronics, from smartphones, laptops, and desktops to home and kitchen
appliances, televisions, office equipment, cameras, and video game consoles. As a result, refurbished electronics offer
advantages such as brand / refurbisher-backed warranties, close-to-new performance, improved battery life, and other
such benefits.

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 The market has seen significant growth, expanding from US$ 11.3B in FY19 to US$ 16.7B in FY24, and is projected
to reach US$ 35B by FY29, at a CAGR of 16% over FY24-29. With rising demand for affordable and high-quality
tech products, consumers and businesses are also becoming more environmentally conscious. This dual shift is driving
substantial growth in the used and refurbished electronics market, as these products offer budget-friendly access to
essential technology while reducing e-waste. Government initiatives promoting a circular economy further enhance
this momentum by encouraging reuse and recycling, which amplifies the environmental benefits of refurbished
products. As a result, refurbished electronics are not only meeting consumer needs for affordability and quality but
also aligning with broader sustainability goals, making them an appealing choice for eco-conscious buyers. The
refurbished and used PCs and premium smartphones market accounts for ~35% of the entire used and refurbished
consumer electronics market in FY24.

3.4.1. Used & refurbished PC market in India

In India’s refurbished and used electronics market, PCs have emerged as a vital segment encompassing PCs sold “as-
is” and those that undergo comprehensive refurbishment processes. The refurbishment of PCs involves both software
and hardware repairs across multiple levels—such as replacing faulty components, software reinstallation, and chip
repairs combined with cosmetic refurbishment to ensure they look and function like new laptops. These refurbished
PCs cater to consumers seeking affordable tech solutions while maintaining high standards of quality and performance
A common trend in both the Indian and global markets is the increasing preference for refurbished devices over “as-
is used” devices.

The refurbishment market has demonstrated steady growth, rising from approximately US$ 0.2 B in FY19 to ~US$
0.8B in FY24, at 27% CAGR. It is projected to reach ~US$ 3.3B by FY29, reflecting a CAGR of 33% from FY24 to
FY29. In FY24, the refurbished segment contributed ~US$ 0.8B, while the used segment accounted for ~US$ 1.3B.
As businesses and students increasingly seek cost-effective alternatives, the used and refurbished laptop market is
poised for significant growth. This demand is further amplified by advancements in refurbishment technologies, which
restore laptops to a like-new condition, enhancing their performance and appeal. Coupled with rigorous quality
assurance measures, consumer trust is on the rise. Organized players, backed by OEM-certified programs and robust
warranties, are strategically positioned to leverage these trends, driving continued expansion within the market.

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3.4.2. Used & refurbished PC market in India split by organized & unorganized sector market share

The used and refurbished laptop market in India has traditionally been dominated by unorganized players, who still
hold the majority share today. Unorganized vendors typically operate without formal business structures, often offering
laptops without standard quality checks or warranties. In contrast, organized players are characterized by their
adherence to established processes, providing refurbished laptops that undergo rigorous quality assessments and
repairs. They often come with warranties and certifications, fostering greater consumer trust and contributing to a more
structured market environment.

In FY19, the unorganized market held a significant share at 95%, while the organized market was much smaller at 5%.
By FY24, the organized segment grew to 11% with a robust CAGR of 33% and this trend is expected to continue
through FY29, where the organized market is projected to reach 32% growing at a CAGR of 42%. The growing shift
towards the organized market is driven by consumer preference for reliable sources, warranties, and quality assurance
offered by established players, while the unorganized market continues to cater to cost-sensitive consumers looking
for lower-priced options. Large established players like Electronics Bazaar are well placed to capitalize on the
significant shift towards the organized market. While ecommerce space for refurbished products is evolving in India,
it has matured in European and North American markets

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3.4.3. ‘New vs. used’ & refurbished PC penetration analysis

The used and refurbished laptop market is steadily increasing its share of the overall laptop market in India, rising
from 20% in FY19 to 24% by FY29. This growth is largely driven by the emergence of organized players within the
sector, which enhances consumer trust and credibility. As the market formalizes, consumers become more confident
in their purchasing decisions, significantly boosting their willingness to invest in refurbished options. This trend
reflects a broader shift toward quality and reliability in the technology market.

3.4.4. Used & refurbished premium smartphones market in India

The used and refurbished premium smartphones market in India is experiencing significant growth, with refurbished
premium smartphones becoming an increasingly attractive option for consumers. This trend allows individuals to
explore new offerings from their preferred brands while being more sustainable and budget-conscious in their
purchasing decisions. As consumers prioritize both quality and affordability, refurbished devices provide a compelling
solution, enabling them to enjoy premium products at more accessible prices while contributing to environmental
sustainability practices. Refurbished smartphones undergo rigorous testing and repair across components such as the
screen, motherboard, and body. These repairs are performed by authorised technicians or refurbishment centers.

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 The market has experienced rapid growth, increasing from US$ 0.5B in FY19 to US$ 3.5B in FY24, and is projected
to reach US$ 9.8B by FY29, with a CAGR of 23% over FY24-29. In FY19, refurbished smartphones made up only
13% of the market, while used smartphones dominated with an 87% share. By FY24, the share of refurbished
smartphones rose to 46%, with used smartphones making up 54%. This trend continues into FY29, where refurbished
smartphones are projected to account for 63% of the market, with the used segment comprising 37%. The shift from
used to refurbished premium smartphones is largely driven by the desire for higher quality and reliability. Refurbished
devices often undergo rigorous testing and repairs, ensuring they meet consumer standards for performance and
longevity.

3.4.5. Economic value proposition of refurbishing

The economic value proposition of refurbishing presents a compelling opportunity for value creation and market
expansion, particularly in a country like India. By extending product lifecycles, refurbishment significantly reduces
consumer costs, enabling a broader segment of the population to access high-quality devices at lower price points.
This affordability drives PC penetration without compromising on quality, allowing consumers to enjoy reliable
technology that meets their needs.

Furthermore, the refurbishment process unlocks new revenue streams between manufacturing and disposal, catalyzing
job creation across the refurbishment value chain, from collection to resale, and leveraging India’s extensive labor
force. It also stimulates ancillary industries, such as testing and grading, fostering entrepreneurship and innovation.
Additionally, refurbishment addresses India’s e-waste management challenges by extracting value from end-of-life
products, particularly precious metals and other valuable materials.

The circular nature of refurbishment opens various employment opportunities in collection, logistics, refurbishment,
and resale, playing a key role in advancing India’s Circular Economy agenda. By promoting resource efficiency and
reducing waste, refurbishment extends the utility of materials. Regulatory incentives aimed at sustainable practices
and waste reduction further encourage the growth of the refurbishment ecosystem, helping to recover valuable
resources and drive environmental sustainability.

This process catalyzes job creation across the refurbishment value chain, from collection to resale, leveraging India’s
extensive labor force. The refurbishment sector also stimulates ancillary industries (e.g. testing & grading), fostering
entrepreneurship and innovation. Moreover, it addresses India’s e-waste management challenges by extracting value
from end-of-life products, particularly from precious metals and other valuable materials. Additionally, the circular
nature of refurbishment opens various employment opportunities in terms of collection, logistics, refurbishment, and
resale. It plays a key role in advancing India’s Circular Economy agenda by promoting resource efficiency, reducing
waste, and extending the utility of materials. Furthermore, regulatory incentives aimed at sustainable practices and
waste reduction encourage the growth of the refurbishment ecosystem, helping address India’s e-waste management
challenges by recovering valuable resources, including precious metals, thereby driving environmental sustainability.

Scrap sale vs. sale to refurbished option analysis

The refurbishing and scrap markets for used electronics differ across key parameters. Refurbishing players offer higher
prices, better customer experiences, and environmental benefits through device reuse. They also provide data security
measures and trade-in incentives. In contrast, scrap dealers offer lower prices, operate through traditional channels that
may impact customer experience, and focus on material extraction rather than device recycling. They typically provide
minimal data security and no additional benefits beyond cash payment for materials.

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Buy new vs. buy refurbished option analysis – qualitative and commercial factors

Refurbished devices provide up to 40% savings for budget-conscious consumers, with in-house warranties versus
brand-specific ones for new devices. While refurbished devices offer comparable performance to new devices, new
devices offer the latest technology. Refurbished options reduce e-waste, while new devices increase environmental
impact. Availability of refurbished models is limited, whereas new devices are generally more accessible.

Refurbished laptop by Electronics Bazaar provides in line performance with original laptops and desktops at
one-third price of new laptop with 1 to 3 year warranty

Refurbished laptops, especially those from established players like Electronics Bazaar, offer performance that aligns
closely with new laptops. Unlike used or second-hand laptops, which often have downgraded performance and may
lack essential updates, refurbished models come with authorised software, genuine drivers, and reconditioned internal
hardware, ensuring they meet original performance levels. Electronics Bazaar’s refurbished laptops are typically
available at one-third of the price of new devices and are as good as new devices both functionally and aesthetically
with one to three years warranty, which further enhances buyer confidence.

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3.4.6. Environmental impact of new manufacturing & refurbishing

The environmental footprint of electronic devices is significantly influenced by three primary lifecycle stages:
production, usage, and disposal:

• The production process involves the extraction of raw materials such as yttrium, lanthanum, cerium & terbium
which are finite in nature, manufacturing, and transportation, all of which contribute to carbon emissions,
deforestation, and pollution.

• During the usage phase, energy consumption for powering devices leads to the release of greenhouse gases.

• Improper disposal of electronic waste can result in groundwater contamination and adverse health effects.

Refurbishing devices conserve precious resources by minimizing the need for new materials, which require significant
energy to extract and process. This not only lowers energy consumption but also reduces pollution associated with
manufacturing. Additionally, refurbishment presents a sustainable alternative by extending the lifespan of devices,
reducing emissions, and diverting electronic waste from landfills. For instance, buying a refurbished laptop can help
mitigate 250-330 kg of carbon dioxide equivalent emissions whereas buying a new laptop causes an emission of ~1200
kg.

3.4.7. Key success factors for a company in this industry

Success in the refurbishment industry hinges on quality and credibility, instilling confidence in customers. Trust is
built through reliable support and convenient return policies, while competitive pricing and quick transactions attract
buyers. A diverse product range and effective distribution strategies broaden market reach, and strong data security
measures enhance customer protection and sustainability, solidifying consumer trust.

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3.4.8. Key growth drivers for the refurbished electronics industry

The Indian refurbished electronics market is growing due to a multitude of factors such as national sustainability goals,
increasing digitization, increasing demand for affordable technology, opportunities for organized players, etc. Key
factors have been highlighted below:

National sustainability goals & government initiatives

The Government of India articulated the ambitions of developing countries at the 26 th session of the Conference of the
Parties (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC), held in Glasgow,
United Kingdom. As a part of this commitment, India introduced the five nectar elements (Panchamrit) of its climate
action plan, three of which play a crucial role in promoting the refurbishment industry. The key highlights of these
commitments are:

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1. Reach 500GW non-fossil energy capacity by CY30
2. Meet 50% of energy requirements from renewable energy by CY30
3. Reduction of carbon emission by 45% by CY30
4. Reduce 1B tons of projected carbon emission from CY21 to CY30
5. Net zero emission by CY70

Out of these 5 components, components related to refurbished electronics are:

Additionally, other key government initiatives are as follows:

• CSR Framework: The CSR guidelines in India, as per the Department of Public Enterprises, mandate that
Public Sector Enterprises (PSEs) allocate at least 2% of their average net profit (calculated over the previous
three financial years) towards CSR activities. The guidelines emphasize the adoption of sustainable practices
and focus on areas such as sustainability education, healthcare, rural development, skill enhancement, and
environmental protection. The sustainability benefits of refurbished electronics make an avenue to channel
the CSR-related investments.

• Right to repair: Policies like right to repair are gaining momentum in India, with a focus on giving
consumers the ability to repair their own products, such as electronics and vehicles, without voiding
warranties. The Right to Repair initiative seeks to reduce electronic waste, promote sustainability, and
encourage manufacturers to provide spare parts, repair tools, and manuals to consumers and independent
repair shops.

Increasing digitalization and the need for PCs for students and entry-level jobs

Digitalization refers to the integration of technologies into everyday processes, fundamentally transforming how
individuals, businesses, and governments operate. According to the State of India’s Digital Economy Report, CY24,
by the Indian Council for Research on International Economic Relations (ICRIER) the state of digitization is based on
the CHIPS (connect, harness, innovate, protect and sustain) framework. Currently, India is the third largest digitized
country based on CHIPS score (39.1%) in the world only after the USA (65.1%) & China (62.3%). In India, where
over 60% of the population resides in rural areas, digitalization is crucial for bridging the economic divide and
expanding access to opportunities. Key factors driving this rapid digitalization include

• Digital India program: Aims to establish robust digital infrastructure, alongside growing broadband
penetration, technological advancements, and low data costs.

• Education: As per the latest available official data as of FY22, 45.8% of schools had access to computers,
reflecting a gradual increase over the past three years; the COVID-19 pandemic has further highlighted the
necessity of computers in modern learning environments.

• Formal sector growth: The Indian tech industry alone has added ~60K jobs in FY24. This increasing job
creation drives demand for PC usage among new entrants to the workforce.

This digitization has had broad positive macroeconomic externalities, key among these are:

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• Empowerment through digital services: The UMANG app, with over 50 million users, provides access to
more than 1,700 government services, streamlining processes for citizens. Similarly, e-Hospital has
simplified healthcare access for over 380M registered patients, making essential services more accessible and
efficient across the nation.

• Digital skills & financial inclusion: The Pradhan Mantri Gramin Digital Saksharta Abhiyaan (PMGDisha)
has transformed rural communities by training and certifying over 50M individuals in digital skills, fostering
digital literacy. Platforms like Aadhaar, facilitates ~2B authentication transactions per month. UPI facilitated
with ~140B transactions in FY24.

Such increased demand from these sectors presents a significant opportunity for the refurbished PC market, catering
to those seeking affordable and reliable technology solutions.

Growing demand for affordable tech products

India’s consumer tech market is on a remarkable growth trajectory, projected to triple in size, reaching ~US$ 400B by
FY29. This growth is largely driven by increasing demand for affordable technology, especially in laptops and mobile
devices. E-commerce platforms like Amazon and Flipkart have played a crucial role in this transformation, making a
diverse range of tech gadgets accessible across various socioeconomic backgrounds and lowering prices for
consumers.

Overall, this dynamic ecosystem underscores a significant transformation in India’s tech landscape. The convergence
of affordability, innovation, and digital accessibility signals a distinct change in consumer behaviour. As more
individuals seek reliable and cost-effective technology solutions, the refurbishment industry is poised to grow
significantly, catering to the increasing demand for affordable tech products and solidifying India’s position as a key
player in the global market. Refurbished mobile phones and laptops are 40-50% cheaper than new devices.

Technological advancements and product cycles of the new products

The refurbishment industry in India is poised for growth, fuelled by current trends, technological advancements and
product cycles. Major smartphone and laptop brands are frequently releasing new models that exhibit only incremental
updates rather than significant innovations. For instance, features such as slightly improved camera capabilities or
marginally faster processors dominate new launches, while the core technology remains largely unchanged. Driven by
social pressure and in a bid to follow the latest trends, consumers feel the need to upgrade their devices frequently,
even when the differences are minimal. As consumers discard older models to keep up with the latest releases, a
substantial opportunity arises for the refurbishment sector. These opportunities are:

• Competitive prices: With a large number of discarded devices entering the market, organized refurbishment
companies can capitalize on this influx by offering quality-assured refurbished products at competitive prices.

• Incremental upgrades: The perception that new models do not represent meaningful upgrades encourages
consumers to consider refurbished options as a viable and economical alternative.

• Environmental concerns: Environmental concerns are rising, and many individuals are opting for
refurbished devices to reduce electronic waste and promote sustainability.

This shift in consumer behaviour aligns perfectly with the objectives of the refurbishment industry, creating a robust
market for high-quality refurbished smartphones and laptops.

Tech advancement in refurbishment technologies, maximizing life post refurbishment

The refurbishment industry has evolved significantly from its early days of basic diagnostic tools and manual testing,
which often led to inconsistent evaluations and consumer uncertainty about product reliability. Today, refurbished
technologies include:

• Diagnostics software: Sophisticated diagnostic software, provides comprehensive assessments of device

health, ensuring consistent quality.

• Data Security: Secure data erasure methods, like multi-pass overwriting, guarantee complete removal of
personal data, effectively addressing privacy concerns and enhancing overall consumer confidence.

• Advanced Technology: Today’s technological advancements such as laser-based technology, automated

diagnostic tools, and nanotechnology have enabled the creation of innovative solutions that improve
efficiency in several key areas including the repair of delicate components & accurate issue diagnosis.

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These innovations advance efficiency for collecting used products, facilitating a circular economy, and allowing for:

• Efficient resource extraction: The efficient utilization of all valuable resources from used electronics.

• Remanufactured and refurbished products: They turn waste into remanufactured and refurbished
products, that are innovative, trendy, sustainable, and affordable. Furthermore, advancements in repair
technologies, such as precision soldering tools

• Maximizing lifespan: By increasing lifespan of refurbished products, promoting sustainability, and reducing
electronic waste. These innovations promise to not only improve operational efficiency but also to foster a
circular economy, ensuring that refurbished electronics remain a viable and trusted option for consumers
seeking quality, affordability, and environmental responsibility.

Sustainable and eco-friendly consumer preferences

Sustainability has become a crucial driver of consumer preferences in India. This is highlighted by the fact that ~60%
of Indian consumers are actively opting for sustainable products. This can be seen by:

• Demand for eco-friendly products: This shift reflects a growing awareness of the relationship between
personal health and environmental health. As such, the demand for eco-friendly products is reshaping market
dynamics, compelling industries to adapt their strategies to meet this evolving consumer consciousness. A
study conducted by the World Economic Forum found that 89% of the largest Indian companies have adopted
a sustainability strategy. The rise in sustainable consumer preferences has led to a significant industrial impact
in the electronics sector.

• Company adoption: Companies are increasingly adopting green marketing strategies to align with consumer
values and stakeholder expectations. This trend is evident as India aims to become a leader in sustainable
electronics manufacturing, emphasizing the need for environmentally responsible practices across the supply
chain. Green initiatives not only resonate with consumers but also drive operational efficiencies and enhance
brand loyalty. In this landscape, the refurbishment industry is uniquely positioned to benefit from sustainable
preferences.

• Changing customer priorities: Gen Z and millennials, who collectively make up ~51% of India’s
population, show a notable inclination toward refurbished and recycled products. These consumers prioritize
functionality and trends over brand value, and they demonstrate a willingness to pay more for sustainable
options. The growing demand for eco-friendly, affordable products positions the refurbishment industry for
growth, aligning with India’s shift towards sustainability.

Consumer trust and warranty programs

Building consumer trust in refurbished products relies on quality certifications, industry standardization and robust
warranty programs that reassure buyers about reliability and safety. The development of industry standards for
refurbished products has played a crucial role in improving product quality and consistency, ensuring that consumers
receive dependable devices that meet recognized benchmarks. Clear communication regarding product condition and
accessible customer support further reduce uncertainty. Additionally, reputable platforms and positive reviews
enhance the overall buying experience, fostering confidence in the refurbished market.

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Additionally, some other key features that are offered by refurbishers to enhance the overall customer purchase
experience are:

• Doorstep pick up of electronics for sale

• Doorstep delivery

• On-site installation of operating system and required software

• On-site repairs and support

Optimizing IT investments for MSMEs / startups operating on lean cost structures

Micro, Small, and Medium Enterprises (MSMEs) and startups in India face substantial challenges due to the high
capital expenditure (capex) required for setting up IT infrastructure. The costs associated with acquiring new laptops
and mobile devices can be particularly burdensome for these businesses, which often operate on tight budgets and
limited resources.

As the digital landscape evolves, access to reliable technology becomes essential for maintaining competitiveness and
operational efficiency. However, the significant financial strain imposed by new IT investments underscores the urgent
need for these enterprises to find cost-effective solutions to reduce their overall expenses.

Considering this situation, the refurbishment industry emerges as a primary solution to address these financial
challenges. Refurbished laptops and mobile phones offer MSMEs and startups an affordable alternative to purchasing
new devices, enabling them to acquire high-quality technology without the high price tag. The refurbishment process
ensures that these devices undergo rigorous testing and quality assurance, restoring them to a condition comparable to
new products. This not only provides reliability but also instills confidence among businesses that are often hesitant
about investing in used technology.

The adoption of refurbished devices is not limited to smaller businesses; large corporations are also increasingly
incorporating refurbished products into their operations. For some companies, this practice is even integrated into their
Corporate Social Responsibility (CSR) initiatives, as it promotes sustainability by reducing electronic waste and
supporting a circular economy.

With the growing acceptance of refurbished products in the market, many MSMEs and startups are now realizing the
benefits of these solutions, which not only alleviate financial pressure but also empower them to allocate saved funds
toward other critical areas such as talent acquisition, marketing, and product development.

Promotion of refurbished products by OEMs, including certified refurbisher programs

Original Equipment Manufacturers (OEMs) play a pivotal role in the refurbishment industry by not only producing
high-quality electronics but also by promoting sustainability and reducing environmental impact of refurbished
products. As market dynamics shift towards environmentally conscious consumption, OEMs are stepping up their
efforts to promote refurbished offerings, which has significantly influenced industry growth. Key initiatives are:

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• Certified refurbishment programs: Leading brands like HP, Dell, and Lenovo have introduced certified
refurbishment programs designed to guarantee the quality and reliability of refurbished products. These
certifications frequently extend to refurbishment companies, creating a wider network of trusted vendors.

• Buyback programs: OEMs like Apple, Dell, and Samsung use buyback programs to promote refurbished
products by encouraging customers to trade in used devices for discounts on new purchases.

• Establishment of dedicated retail stores: Notably, top OEMs including HP and Asus are now establishing
dedicated retail stores that exclusively sell refurbished laptops and desktops.

• Official third-party retailers: This strategy, alongside collaborations with third-party retail partners, allows
these companies to reach a wider audience and cater to the growing demand for cost-effective, sustainable
technology solutions.

The impact of these initiatives is multifaceted. First and foremost, the promotion of certified refurbished products
enhances credibility within the market. Consumers are more likely to trust refurbished items that come with OEM-
backed certifications, knowing they meet:

• Quality assurance: Certified refurbished programs ensure that minimum quality standards are met during
the refurbishment process, assuring the customer of a quality product. This is generally backed by a
manufacturer warranty.

• Quality control: This trust is further bolstered by the emphasis on quality control during the refurbishment
process, which significantly enhances the overall user experience.

• Availability of warranty: The assurance of warranty plays a vital role in making the purchase of refurbished
goods from an official retailer

• Better retail experience: The promotion of refurbished products by OEMs has enabled the customers to
avail best-in-class retail experience previously only associated with new products.

Furthermore, the collaboration between OEMs and certified refurbishment companies fosters a more responsive
industry, allowing for rapid adaptation to consumer needs and preferences. This partnership also ensures a steady
supply of refurbished devices, supporting continuous procurement and maintaining consistent availability of high-
quality, affordable technology solutions.

First-mover advantage for organized players

The refurbishment industry in India is predominantly unorganized, creating significant opportunities for organized
players. A major factor contributing to this unorganized nature is the lack of infrastructure necessary for effective
refurbishment. For example, the scarcity of specialized tools and dedicated refurbishment centres, along with limited
availability of high-quality components, complicates the refurbishment process.

However, organized players can leverage advanced technologies and quality assurance processes to differentiate
themselves, effectively addressing these challenges and capitalize on market’s potential. By adeptly navigating
logistical and supply challenges related to high-quality components, organized players are better positioned for growth.

For instance, many new-age organised startups can curate high-quality refurbished devices through dedicated &
standardized processes. The devices not only enhance consumer confidence but also expand the market for refurbished
goods among organised players, paving the way for future growth in the industry. Organized players benefit from
strong procurement networks, allowing them to absorb large quantities of components and devices. This capability
translates into competitive pricing, enabling them to offer better prices to consumers. Their sales network ensures a
stable supply, a large SKU range, and competitive pricing, further solidifying their market position.

Moreover, these players invest in building credibility with customers through consistent quality, warranties, and
dedicated customer support. Additionally, the availability of trained manpower is essential for ensuring the efficient
refurbishment of devices, making workforce development a priority for organized companies aiming to establish a
strong foothold in this market.

First-mover advantages for organised players are therefore crucial in this context, as these organised players, due to
quality offerings, can leverage significant benefits such as enhanced trust; customer loyalty & brand recognition. A
strong reputation for quality fosters repeat business and positions these players to capture market share ahead of
competitors. While the refurbished electronics sector faces barriers—like a lack of necessary infrastructure, scarcity

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 of high-quality components, and high reliance on imports—the initial trust built by first movers is difficult for later
entrants to replicate.

All such factors culminate to foster repeat business; and the ability to capture market share early on. In the present
day, refurbished electronics sector faces multiple barriers to entry such as lack of necessary infrastructure (tools &
centres), scarcity of high-quality components & high reliance on imports.

3.4.9. Indian government initiatives and efforts to promote refurbishment

The Indian government is actively promoting the refurbishment industry as part of its sustainability and economic
development goals which reflect the government’s commitment to supporting a robust refurbishment sector that
contributes to environmental conservation and economic resilience.

Extended Producer Responsibility (EPR)

Extended Producer Responsibility (EPR) is a regulatory framework that holds producers accountable for the entire
lifecycle of their products, from design to disposal. This principle mandates that manufacturers manage the collection,
recycling, and environmentally sound disposal of their products, thereby minimizing their environmental impact.

In India, EPR has been specifically implemented for the management of electronic waste (e-waste). Producers of
electrical and electronic equipment must apply for a registration certificate and set recycling targets through the e-
waste EPR portal managed by the Central Pollution Control Board (CPCB). This online system requires all
stakeholders—including producers, recyclers, refurbishers, and manufacturers—to register and report their activities,
ensuring compliance with e-waste management guidelines.

EPR facilitates refurbishers by creating a structured environment for collecting e-waste and promoting the recycling
of components. By registering on the EPR portal, refurbishers can collaborate with authorised recyclers, gaining access
to a steady stream of materials for refurbishment. This not only supports their operations but also enhances their
credibility by ensuring adherence to regulatory standards.

Implementation Guidelines for E-Waste (Management) Rules in India set specific targets for the collection of e-
waste by producers. According to these guidelines:

• Producers are required to collect a specified percentage of the quantity of waste generated by their products
sold in the market during a certain timeframe

• The guidelines outline a phased approach to achieving these targets, starting with 10% collection in the first
year, progressively increasing to 40% by the seventh year

• This progressive scaling helps producers build the necessary infrastructure and implement systems for
effective e-waste collection over time

Target-based approach for implementation of extended producer responsibility (“EPR”) has been adopted in the E-
Waste (Management) Rules, 2022, which stipulate phase-wise collection target to producers for the collection of e-
waste, either in number or weight, which shall be 60% of the estimated quantity of waste generation during FY23-24
and FY24-25, followed by 70% during FY25-26 and FY26-27, 80% during FY27-28. This progressive approach aims
to steadily improve recycling rates and foster sustainable practices in e-waste management.

Overall, EPR bolsters the refurbishment industry by promoting sustainable practices and encouraging innovation in
product design. By mandating that producers manage the lifecycle of their products, EPR ensures a reliable supply of
end-of-life electronics, which refurbishers can acquire for processing. This regulation not only facilitates easier access
to quality components for refurbishment but also enables refurbishers to meet regulatory compliance, enhancing their
credibility in the market. Moreover, by making producers responsible for their products’ end-of-life management, EPR
helps create a circular economy where resources are reused and recycled. This approach not only reduces
environmental impact but also fosters economic growth within the refurbishment sector, contributing to job creation
and industry resilience.

National Resource Efficiency Policy (NREP)

The draft National Resource Efficiency Policy (NREP) aims for environmentally sustainable growth and resource
security. The NREP encourages a resource-efficient and circular economy, allowing industries to create higher value
with less material, thereby reducing costs and enhancing resource productivity. The policy also emphasizes a lifecycle
approach to resource management, urging businesses to consider the environmental and economic impacts of products

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 at all stages—from raw material extraction to disposal. This perspective fosters innovation and competitiveness,
particularly for refurbishing companies.

In conjunction with the NREP, the Corporate Social Responsibility (CSR) policy and relevant laws support sustainable
practices by mandating companies to allocate a portion of their profits towards social and environmental initiatives.
This alignment encourages businesses to adopt resource-efficient practices and invest in refurbishing efforts, further
enhancing their contribution to a circular economy. The existing framework not only promotes compliance but also
incentivizes industries to explore innovative solutions for waste reduction and resource optimization, reinforcing the
importance of sustainability across sectors.

Right to Repair in India

The Ministry of Corporate Affairs is currently in the process of creating a Right to repair framework that aims to
provide all customers with the option to repair their electronic products at an optimal cost, as opposed to buying new
products. Under this framework, it would be mandatory for manufacturers to share their product details with customers
to allow for repair by themselves or by third parties. Mobile phones, tablets and consumer durables are some key
sectors in focus for the framework. Various notable brands such as Samsung, Boat, HP, LG, Oppo, Lenovo, Real Me,
Apple, Acer, Xiaomi, OnePlus, Sony and Dell have registered with the MCA in support of the framework.

3.4.10. Value addition / differentiation of organized players vs mom-and-pop stores

Electronics Bazaar and similar players stand out from mom-and-pop stores by offering detailed product descriptions,
a clear grading system, and thorough assessments conducted by trained professionals. Their commitment to quality is
reinforced by warranties with transparent terms, strict adherence to manufacturer standards, and an efficient end-to-
end refurbishment process. Additionally, comprehensive online platforms and regional service capabilities enhance
accessibility and streamline the buying experience for customers.

Several companies in India include refurbishment in their CSR efforts to promote sustainability and community
development. HP India donates refurbished computers to schools and non-profits, enhancing digital access. Dell India
collaborates with NGOs to refurbish and distribute computers, supporting digital literacy. Wipro incorporates
refurbishment in its Earthian program to encourage recycling and reuse, while Infosys engages in e-waste management
projects that include refurbishing devices. These efforts help bridge the digital divide and promote responsible
consumption.

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4.1 Company overview

Electronics Bazaar specializes in refurbishing electronic devices like laptops, desktops, and premium smartphones,
offering high-quality products at affordable prices. Expanding further, it established operations in Dubai and the USA
continuing to make strides in the global market. The used and refurbished laptop markets in key geographies such as
India, USA and Europe are undergoing a significant shift towards organized players. However, even the organised
market remains fragmented with no player occupying >5% of the market and a large number of small-scale outlets
with limited reach and refurbishment capacity

Electronics Bazaar is unique in the industry for its presence across the full value chain. Each of its facilities is equipped
with extensive refurbishing capabilities which include not only screening and parts repair (L1 and L2 activities) but
also motherboard repairs (L3 activities) along with laser keyboard reprinting, paint, fabrication and cosmetic work.
Electronics Bazaar is amongst a few companies globally specialising in LCD repairs including repolarisation and light
guide plate (LGP) correction. Additionally, the dispatch area, receiving zone, and QC division guarantee rigorous
quality control. The packing department prepares devices for shipment, while the sales and operations teams distribute
refurbished products to various distributors across cities, enhancing customer confidence with a 1 to 3 years warranty.
Operating from a state-of-the-art facility spanning 58,127.82 Sq. Ft. across India, UAE, and the USA, which gives
Electronics Bazaar the flexibility to scale and meet growing market demands efficiently and effectively access ~70%
of global GDP from these strategic locations. Electronics Bazaar’s facility in the USA serves North and South America,
while its UAE facility provides access to Europe, the Middle East, Africa, and the Asia-Pacific regions. Electronics
Bazaar has one of the largest facilities among Indian ICT refurbishes, with a high-level of integration. Each refurbished
device is sold with a 1 to 3 years warranty, offering customers confidence in the product’s reliability and durability.

The company holds certifications as Microsoft Authorised Refurbisher and complies with environmental standards set
by the Maharashtra Pollution Control Board and the Central Pollution Control Board. The company follows a rigorous
refurbishing process, from initial product screening and grading to post-repair quality checks, ensuring every unit
meets world-class standards. Additionally, the company also holds key certifications, including the prestigious R2V3
certification—recognized as the highest standard in responsible recycling—along with various ISO certifications,
further reinforcing its commitment to quality and sustainability.

Electronics Bazaar is actively promoting reuse of devices by consolidating and standardizing the unorganized
refurbished ICT device market. As a government-certified refurbisher, the company stands out for its commitment to
sustainability and quality. Electronics Bazaar’s EPR (Extended Producer Responsibility) certificate, issued by the
Central Pollution Control Board (CPCB), along with the Consent to Operate from the Maharashtra Pollution Control
Board (MPCB), reinforces its dedication to environmentally responsible operations. By actively pursuing ESG
compliance, Electronics Bazaar not only mitigates environmental impact but is also in a position to capitalize on
evolving business opportunities. Markets such as Europe, provide incentives and benefits to companies that prioritize
ESG standards. Electronics Bazaar serves as an IT asset disposition (“ITAD”) partner for leasing companies, IT
consulting companies and banks as they meet their sustainability and data privacy requirements, thus the company
enjoys a strong procurement advantage, underpinned by its mature relationships with OEMs such as HP, and Lenovo,
enabling direct procurement from these leading brands. The company’s multi-channel procurement strategy extends
to partnerships with corporates, recyclers, leasing companies, brokers, and other institutes, further strengthened by its

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multi-geography procurement network that spans the Americas, EMEA, and India. This robust structure allows
Electronics Bazaar to refurbish used condition IT assets to A-grade cosmetically and functionally.

Electronics Bazaar uses multiple check points and meets quality standards with world class SOPs. These include
measures such as software reinstallation, reset settings, small part replacement, PCB chip repair level. It goes an extra
mile by focusing on data sanitization / data security using both soft and hard erasures. It uses data erasure measures
like NIST SAS, etc, drive degaussing, and hard drive shredding. It executes data sanitization procedures on all devices
in strict accordance with R2 V3. It has ISO 27001 certification, an international standard for information security
management systems, solidifying its commitment towards proper data sanitization and integrity. Devices refurbished
by Electronics Bazaar sells at a premium compared to other players in the industry due to superior quality of product
and Electronics Bazaar’s ability to provide proven and reliable warranty solutions. Electronics Bazaar’s
comprehensive process of refurbishment of ICT devices such as laptops, desktops, tablets, servers, premium
smartphones, mobile workstations and accessories ensures that such devices are similar to new, in terms of both
performance and aesthetics, and able to offer laptops at one-third price of new devices and other devices like desktops,
tablets, servers, premium smartphones, mobile workstations and accessories at 35-50% price of new devices.

The company’s transformational advantage lies in its ability to build trust with stakeholders through a 1 to 3 years
warranty, making it a trusted brand for resale channel partners, large format retailers (LFRs), marketplaces, and
distributors. It also offers best-in-class service, with a device customization facility for ‘configuration to order’ and
strong after-sales support.

Through its website and online marketplace, Electronics Bazaar offers budget-conscious MSMEs and startups the
opportunity to optimize their IT investments by purchasing high-quality, Microsoft Authorised Refurbished ICT
device. Electronics Bazaar is India’s largest Microsoft Authorised Refurbisher, in terms of refurbishing capability as
of FY24. These products not only reduce capital expenditure but also offer savings on hardware and software licenses.
As one of the top brands in the refurbished PC space, the company ensures that customers have access to reliable
refurbished products, all backed by comprehensive warranties, at affordable prices.

In addressing concerns such as lack of transparency, quality assurance, and the uncertainty surrounding a gadget’s
authenticity, Electronics Bazaar provides an easy-to-scale solution. With its emphasis on transparency and quality, the
company continues to set industry standards while making refurbished electronics a smart, sustainable choice for
businesses and individuals alike.

Electronics Bazaar’s business model revolves around sourcing used products from corporates, banks, leasing
companies, and OEMs, which are then sold through multiple channels, including a robust online platform, over
multiple retail partners, and services & fintech solutions. The company provides additional services such as warranties,
onsite installation, leasing options, and assured buyback. Electronics Bazaar is India’s largest refurbisher of laptops
and desktops and among the largest refurbishers of ICT devices overall both globally and in India in terms of value as
of 31st March 2024. Electronics Bazaar’s refurbished laptops are typically available at one-third of the price of new
devices.

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4.2 Operational benchmarking

Electronics Bazaar operates in the refurbishment of all three – phone, laptop and desktop, with its sales presence across
both offline and online channels. It has the widest presence, when compared to its peers, that spread across 35
countries. Electronics Bazaar is one of the few companies i.e. pioneered the concept of warranty for the refurbished
ICT Devices to provide comfort and trust to customers and are still industry leading the warranty terms.

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4.3 Financial benchmarking:

From FY22-24 while global refurbished consumer electronics devices market grew at 10% whereas Electronics Bazaar
revenue from operations increased at a CAGR of 48%.

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 Parameters Company FY22 FY23 FY24 H1FY25
Revenue from Electronics Bazaar 5,204.95 6,595.42 11,381.38 6,079.62
operations (INR M) New Jaisa 279.19 445.30 617.32 337.23
Close the Loop^ 6,264.47 12,142.17 19,022.62 NA
MusicMagpie^^ 12,883.37 12,857.97 12,089.92 4,763.09

Gross margin Electronics Bazaar 11.84% 15.34% 12.31% 16.88%

(%) New Jaisa 31.69% 43.40% 46.67% 44.62%
Close the Loop^ 29.99% 35.01% 37.59% NA
MusicMagpie^^ 30.40% 26.30% 27.70% 29.07%

EBITDA Electronics Bazaar 346.70 500.40 849.04 633.69

(INR M) New Jaisa 30.18 87.39 89.38 52.05
Close the Loop^ 638.49 2,026.67 4,132.49 NA
MusicMagpie^^ -907.00 466.95 318.09 159.93

EBITDA (%) Electronics Bazaar 6.66% 7.59% 7.46% 10.42%

New Jaisa 10.81% 19.62% 14.48% 15.44%
Close the Loop^ 10.19% 16.69% 21.72% NA
MusicMagpie^^ -7.04% 3.63% 2.63% 3.36%

PAT (INR M) Electronics Bazaar 217.70 324.28 523.05 352.12

New Jaisa 18.02 67.36 63.18 33.93
Close the Loop^ 410.71 1,093.15 997.39 NA
MusicMagpie^^ -1,073.13 -419.07 -606.53 -255.96

PAT (%) Electronics Bazaar 4.18% 4.92% 4.60% 5.79%

New Jaisa 6.45% 15.13% 10.23% 10.06%
Close the Loop^ 6.56% 9.00% 5.24% NA
MusicMagpie^^ -8.33% -3.26% -5.02% -5.37%

ROE* Electronics Bazaar 27.36% 28.97% 31.96% 17.76%

(%) New Jaisa 70.78% 72.42% 11.44% 3.84%
Close the Loop^ 8.64% 9.86% 7.89% NA
MusicMagpie^^ -49.93% -24.23% -55.82% -30.84%

ROCE** Electronics Bazaar 18.06% 17.91% 16.72% 8.43%

(%) New Jaisa 68.58% 51.98% 13.26% 4.14%
Close the Loop^ 6.19% 12.06% 15.79% NA
MusicMagpie^^ -54.85% -2.53% -36.72% -6.45%
Note(s):
Gross Margin%= Gross margin / Revenue from operations; Gross margin = Revenue from operations – Cost of materials consumed, Purchases of
Stock In Trade and Changes in inventories of finished goods and work-in-progress
EBITDA = Restated Profit Before Tax (before exceptional items) + Finance Cost + Depreciation and Amortization
EBITDA Margin = EBITDA / Revenue from operations
PAT Margin = PAT / Revenue from operations

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 ROE = PAT attributable to owners of company / Shareholders Equity; *ROE for H1FY25 is not annualized
ROCE = EBIT / Capital employed; EBIT = EBITDA - Depreciation and Amortization and impairment of goodwill, Capital employed = total equity
+ borrowings + current maturities of long term borrowings; **ROCE for H1FY25 is not annualized
^Close the loop financials are June end basis instead of March end basis
^^MusicMagpie financials indicated are calendar year basis

4.4 Key threats and challenges to the refurbishment industry

• Varied quality and standards: The refurbishment industry lacks uniform standards, leading to significant
discrepancies in product quality and performance across different providers.

• Technological obsolescence: Rapid advancements in semiconductor technology and new chip architectures
can render refurbished devices obsolete, as older models might have limitation in their functionality and
market appeal.

• Lack of awareness: A substantial number of consumers are unfamiliar with the advantages of refurbished
products, such as lower costs and reduced environmental impact, which hinder market growth.

• Consumer trust: Establishing trust in refurbished electronics is vital, as customers often worry about hidden
defects and the overall longevity of these products.

• Data security: Implementing effective data erasure processes is a major challenge in the refurbished
electronics industry, as inadequate removal of previous user data can lead to serious privacy risks and
diminish consumer confidence in selling laptops to refurbished players.

• Limited warranty: Refurbished products typically come with shorter warranties than new items, which can
lead to hesitance among consumers concerned about potential future repair costs.

• Perception of inferiority and consumer mistrust: The belief that refurbished products are subpar fosters
skepticism about their reliability and durability compared to new models, requiring targeted marketing to
educate consumers and build trust in refurbished electronics.

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 OUR BUSINESS

Unless otherwise stated, references in this section to “we”, “our” or “us” (including in the context of any financial information)
are to the Company along with its Subsidiaries, on a consolidated basis and references to our “Company” refers to GNG
Electronics Limited on a standalone basis. To obtain a complete understanding of our Company and business, prospective
investors should read this section in conjunction with “Risk Factors”, “Industry Overview”, “Financial Information” and
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” on pages 25, 112, 229 and 295,
respectively as well as financial and other information contained in this Draft Red Herring Prospectus as a whole. Additionally,
please refer to “Definitions and Abbreviations” on page 1 for definition of certain terms used in this section.

Some of the information in the following section, especially information with respect to our plans and strategies, consists of
certain forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those
expressed in, or implied by, these forward-looking statements. You should read the section “Forward-Looking Statements” on
page 16 for a discussion of the risks and uncertainties related to those statements and the section “Risk Factors” on page 25
for a discussion of certain risks that may affect our business, financial condition, or results of operations and the “Financial
Information” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” on pages 229
and 295, respectively, for a discussion of certain factors that may affect our business, financial condition or results of
operations.

Our Company’s financial year commences on April 1 and ends on March 31 of the immediately subsequent year, and references
to a particular fiscal year are to the 12 months ended March 31 of that particular year. Unless otherwise indicated or the
context otherwise requires, the financial information for the six months period ended September 30, 2024, Fiscal 2024, Fiscal
2023 and Fiscal 2022, included herein is based on or derived from our Restated Consolidated Financial Information included
in this Draft Red Herring Prospectus. For details, please see “Restated Consolidated Financial Information” on page 229. The
Restated Consolidated Financial Information is based on our audited financial statements and is restated in accordance with
the Companies Act, 2013, and the SEBI ICDR Regulations. We have also included various operational and financial
performance indicators in this Draft Red Herring Prospectus, some of which have not been derived from our Restated
Consolidated Financial Information. The manner of calculation and presentation of some of the operational and financial
performance indicators, and the assumptions and estimates used in such calculation, may vary from that used by other
companies in India and other jurisdictions.

Industry and market data used in this section have been extracted from the 1Lattice Report, which has been exclusively
commissioned and paid for by our Company in connection with the Offer, for the purposes of confirming our understanding of
the industry in which we operate. 1Lattice Report is not, and has not in the past, been engaged or interested in the formation,
or promotion, or management, of our Company. Further, it is an independent agency and neither our Company, nor our
Directors, Promoters, Key Managerial Personnel, Senior Management, and Subsidiaries, nor the BRLMs are a related party
to 1Lattice Report as per the definition of “related party” under the Companies Act, 2013. The 1Lattice Report will be available
on the website of our Company at https://www.electronicsbazaar.com/investor from the date of this Draft Red Herring
Prospectus until the Bid/Offer Closing Date and has also been included in “Material Contracts and Documents for Inspection
– Material Documents” on page 395. The data included herein includes excerpts from the 1Lattice Report and may have been
re-ordered by us for the purposes of presentation. Unless otherwise indicated, all financial, operational, industry and other
related information derived from the 1Lattice Report and included herein with respect to any particular year, refers to such
information for the relevant Financial Year.

For further details and risks in relation to the 1Lattice Report, see “Risk Factors – Certain sections of this Draft Red Herring
Prospectus disclose information from the 1Lattice Report which has been prepared exclusively for the Offer and commissioned
by our Company and paid for by our Company exclusively in connection with the Offer, and any reliance on such information
for making an investment decision in the Offer is subject to inherent risks.” on page 49.

Overview

We are India’s largest refurbisher of laptops and desktops and among the largest refurbishers of ICT Devices overall, both
globally and in India with significant presence across India, USA, Europe, Africa and UAE, in terms of value, as of March 31,
2024 (Source: 1Lattice Report). We follow a repair-over-replacement approach, which provides cost advantages and helps
achieve true sustainability by reducing carbon footprint.

We are India’s largest Microsoft Authorised Refurbisher, in terms of refurbishing capability, as of Fiscal 2024 (Source: 1Lattice
Report). We are also the IT asset disposal partner for India’s second – largest software company, in terms of market
capitalisation as of Calendar Year 2024, procuring their used IT assets (Source: 1Lattice Report).

The global refurbished personal computer market grew from US$ 9.7 billion in CY18 to US$ 14.4 billion in CY23, reflecting
an 8% CAGR, and is projected to reach US$ 38.3 billion by CY28, at 22%. Similarly, the Indian refurbished PC market grew
from US$ 0.2 billion in FY19 to US$ 0.8 billion in FY24, showing a 27% CAGR, and is expected to reach US$ 3.3 billion by
FY29, at a CAGR of 33%. A common trend in both the Indian and global markets is the increasing preference for refurbished

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devices over “as-is used” devices. In India, the organized market share grew from approximately 5% in FY19 to 11% in FY24,
with a robust CAGR of 33%. This share is projected to further expand to 32% by FY29, at an impressive CAGR of 42%. Set
below is a chart the comparative growth of our Company and global refurbished customers electronics device market (Source:
1Lattice Report).

(Source: 1Lattice Report)

We operate under the brand “Electronics Bazaar”, with presence across the full refurbishment value chain i.e., from sourcing
to refurbishment to sales, to after – sale services and providing warranty. We solve customers’ requirement of affordable,
reliable and premium ICT Devices which are as good as new devices, both functionally and aesthetically, and are backed by
proven warranty. We also provide tailor – made solutions for our customers. Our comprehensive process of refurbishment of
ICT Devices such as laptops, desktops, tablets, servers, premium smartphones, mobile workstations and accessories ensures
that such devices are similar to new in terms of both performance and aesthetics, and able to offer laptops at one-third price of
new devices and other devices like desktops, tablets, servers, premium smart phones, mobile workstations and accessories at
35-50% price of new devices (Source: 1Lattice Report). We are one of the few companies which pioneered the concept of
warranty for the refurbished ICT Devices to provide comfort and trust to our customers and are still offering industry leading
warranty terms (Source: 1Lattice Report). The ICT Devices refurbished by us sell at a premium to other player in the industry
due to superior quality of products and our ability to provide proven and reliable warranty solutions (Source: 1Lattice Report).

Set forth below is the data in relation to revenue contribution from our ICT Devices for the years/period indicated:

Particulars As of six months period Fiscal 2024 Fiscal 2023 Fiscal 2022
ended September 30,
2024
Amount Percentage Amount Percentage Amount Percentage Amount Percentage
of revenue of revenue of revenue of revenue
from from from from
operations operation operations operations
(₹ million) (%) (₹ million) (%) (₹ million) (%) (₹ million) (%)
Revenue from sale of 4,595.38 75.59 7,724.16 67.87 5,274.58 79.97 4,638.83 89.12
laptops
Revenue from others* 1,484.24 24.41 3,657.22 32.13 1,320.84 20.03 566.12 10.88
Total revenue from 6,079.62 100.00 11,381.38 100.00 6,595.42 100.00 5,204.95 100.00
operations
*Includes desktops, tablets, servers, premium smart phones, mobile workstations and accessories.

We are also a certified refurbishment partner with Lenovo and HP, which are top two global brands, in terms of market share
of 24% and 21%, respectively, as of CY 2023 (Source: 1Lattice Report). Additionally, we serve as IT asset disposition
(“ITAD”) partners for leasing companies, IT consulting companies and banks as we meet their sustainability and data privacy
requirements.

We offer other value – added services such as ITAD and e – waste management services, warranties, doorstep service, on–site
installation, flexible pay options, easy upgrades, assured buyback programmes and buyback programmes for refurbished ICT
Devices. We provide tailored buyback solutions for laptops and desktops to help large format retail stores such as Vijay Sales
(India) Private Limited (“Vijay Sales”) and OEM brand stores such as HP India Sales Private Limited (“HP”) and Lenovo
Global Technology (India) Private Limited (“Lenovo”) to run efficient, customer – friendly buyback programs facilitating sale
of new devices. We also offer other categories of ICT Devices such as open – box and brand new ICT Devices, providing

170
customers with a range of options that cater to different needs and budgets. In addition, we also offer ICT Devices customised
to the customer specifications and requirements. Moreover, we offer a wide range of stock keeping units (“SKUs”) and as of
September 30, 2024, our portfolio included 4,996 SKUs.

We have sales network with our refurbished ICT Devices being sold in 35 countries as of September 30, 2024. Our sales
network comprises 3,265 touchpoints, in India and globally, as of September 30, 2024. These touchpoints include sale of ICT
Devices through IT Solutions Providers/ Value Added Resellers, System Integrators, E-Tailers, Rental and Leasing Companies
and Distributors/Aggregators. We even supply to global refurbishment companies including US based companies such as Joy
Systems Inc, HUBX LLC, PlanITROI LLC, and Europe based companies such as PhoenixRM Ltd (Trading as GreenIT), ATX
Computers Group, who procure from us on account of our quality, skill set and cost advantages. Additionally in India, among
other prominent names, we supply to HP India Sales Private Limited, Lenovo Global Technology (India) Private Limited and
Vijay Sales (India) Private Limited.

Set forth below is the data in relation to the growth of our customers for the years/period indicated:

Particulars As of six months period ended Fiscal 2024 Fiscal 2023 Fiscal 2022
September 30, 2024
Number of customers 3,265 3,252 1,833 1,263

Similarly, we have a multi – channel global procurement network of 447 suppliers supported by an extensive procurement
network in India and across the globe. Our procurement network comprises corporates, consulting companies, intermediaries,
recyclers, refurbishment partners, educational institutes, leasing companies, NBFCs, large format retail stores and OEM brand
stores, as of September 30, 2024. As refurbishers, we also enable HP and Lenovo for their assets/devices recovery services
which they offer to their corporate customers which also helps them enable sale of new devices. Our procurement partners,
among other prominent names, include USA based Iron Mountain and Apto Solutions Inc; Australia based Green Box Group
Pty Ltd and Renew IT Pty Ltd; HP, Lenovo, Microsoft, Tata Capital Limited, and Steller Information Technology Private
Limited (BitRaser), . We also have a service network comprising in house engineers, field engineers, on site engineers and we
also enable Value Added Resellers and System Integrators to service our customers across India. Set forth below is the data in
relation to the count of our procurement partners for the years/period indicated:

Particulars As of six months period ended Fiscal 2024 Fiscal 2023 Fiscal 2022
September 30, 2024
Count of procurement
447 356 265 157
partners

We are a Company with domestic and international operations, with five refurbishing facilities located across India, USA and
UAE. We have one facility in Navi Mumbai, Maharashtra, India, one facility in Dallas, Texas, USA and three facilities in
Sharjah, UAE, aggregating to 58,127.82 sq. ft. Each of our facilities is equipped with extensive refurbishing capabilities which
includes not only screening and parts repair (L1 and L2 activities) but also motherboard repairs (L3 activities) along with
keyboard reprinting, paint, fabrication and cosmetic work. We are amongst few companies globally, specialising in LCD repairs
including repolarisation and light guide plate correction (“LGP”) (Source: 1Lattice Report).

We also have an office in Netherlands housed in one of our Subsidiaries, Electronics Bazaar BV. Our facilities are strategically
located to cater to regional markets while maintaining a global reach across India, Middle East, Europe, Africa and USA. Our
facility in India adheres to internationally recognized quality management standards, including ISO 9001:2015 for quality
management, ISO 27001:2013 for information security, ISO 14001:2015 for environmental management and ISO 45001:2018
for occupational health and safety. Additionally, we have “Extended Producer Responsibility” certification from Central
Pollution Control Board and “Responsible Recycling Version 3” certification from Sustainable Electronics Recycling
International (“SERI”). Such certifications highlight that our processes are not only efficient but also aligned with global
industry practices. For details of other awards and certifications, “History and Certain Corporate Matters –Awards,
Accreditations and Recognitions” on page 197.

Our Promoter and founder, Sharad Khandelwal, has 29 years of experience in the information and communication technology
industry, playing a pivotal role in shaping our vision for affordable and reliable refurbished ICT Devices. We have expanded
our focus towards modern technology and sustainable practices under his leadership and guidance. He is a member of the
Institute of Chartered Accountant of India (ICAI) and held all India rank six in the final examination conducted by ICAI during
the year 1994. His deep understanding of the industry, combined with his management skills, has enabled us to position our
Company as one of the key players in the refurbished ICT Devices industry. His leadership plays a crucial role in strategic
decisions, overseeing key business functions, contributing to our growth and operational efficiency. He is also supported by an
international team of Key Managerial Personnel and Senior Management Personnel, who collectively bring extensive expertise
across various business functions, including finance, compliance, business expansion, project management, and engineering.
Additionally, the team possesses knowledge and expertise in business development, supply chain management, and operations,
having contributed to the growth of renowned companies in the consumer electronics sector. Their combined experience ensures

171
a quick execution and well – rounded leadership that drives operational excellence and strategic growth for the Company. For
further details, refer to “Our Management” on page 206.

The following table sets forth certain financial and operational information for the years / period indicated:

(in ₹ million, unless otherwise stated)

Particulars Six months period Fiscal 2024 Fiscal 2023 Fiscal 2022
ended September 30,
2024
Revenue from Operations (1) 6,079.62 11,381.38 6,595.42 5,204.95
Gross Margin (2) 1,026.22 1,401.52 1,011.45 616.51
Gross Margin (%) (3) 16.88% 12.31% 15.34% 11.84%
EBITDA(4) 633.69 849.04 500.40 346.70
EBITDA Margin (%) (5) 10.42% 7.46% 7.59% 6.66%
PAT(6) 352.12 523.05 324.28 217.70
PAT Margin (%) (7) 5.79% 4.60% 4.92% 4.18%
RoE (%) (8)* 17.76% 31.96% 28.97% 27.36%
ROCE (%) (9)* 8.43% 16.72% 17.91% 18.06%
Net Working Capital (no. of days) (10) 146 42 61 60
Property, plant and equipment (Gross) 15.95 31.97 60.65 51.73
turnover ratio (11)*
Revenue split by geography 6,079.62 11,381.38 6,595.42 5,204.95
- Within India 1,480.30 4,783.90 3,262.92 3,112.58
- Outside India 4,599.32 6,597.48 3,332.50 2,092.37
Volume of devices refurbished (no.) 2,59,628 3,69,320 2,48,135 1,95,651
(12)

No. of customers served (no.) (13) 3,265 3,252 1,833 1,263

No. of procurement partners (no.) (14) 447 356 265 157
*Not annualized.
.
Notes:
1. Revenue from operations as per Restated Consolidated Financial Information.
2. Gross Margin is calculated as revenue from operations as per Restated Consolidated Financial Information minus cost of materials consumed, purchases
of stock in trade and changes in inventories of finished goods and work-in-progress.
3. Gross Margin (%) is computed as material margin divided by revenue from operations *100.
4. EBITDA is calculated as restated profit before tax (before exceptional items) plus finance costs and depreciation and amortization expenses.
5. EBITDA Margin (%) is computed as EBITDA divided by revenue from operations*100.
6. Restated profit for the year as per Restated Consolidated Financial Information.
7. PAT Margin (%) is calculated as restated profit for the year divided by Revenue from Operation.
8. Return on Equity (%) is calculated as PAT attributable to owners of the Company as a % Shareholders’ equity.
9. ROCE is calculated as EBIT as a % of capital employed. EBIT is calculated as EBITDA minus depreciation and amortization and impairment of goodwill.
Capital employed including non controlling interest refers to sum of total equity plus borrowings plus current maturities of long term borrowings.
10. Net Working Capital (no. of days) are calculated by dividing net working capital by revenues from operation multiplied by 365. Net working capital
amount is calculated as current assets less current liabilities.
11. Property, plant and equipment (gross) turnover ratio is calculated by dividing revenues from operation by gross block value of property, plant and
equipment as per Restated Consolidated Financial Information.
12. Volume of devices refurbished (Nos) is calculated as sum of total numbers of ICT devices refurbished by the Company during the period.
13. No. of customers served (Nos.) is calculated as sum of customers invoiced by the Company during the period.
14. No. of procurement partners (Nos.) is calculated as sum of procurement partners from which the Company had purchases during the period.

Our Strengths

India’s largest refurbisher of laptops and desktops and among the largest refurbishers of ICT Devices overall, both globally
and in India

We are India’s largest refurbisher of laptops and desktops and among the largest refurbishers of ICT Devices overall, both
globally and in India, with significant presence across India, USA, Europe, Africa and UAE , in terms of value, as of March
31, 2024 (Source: 1Lattice Report). Refurbishment industry is uniquely placed to grow even in downcycles of economic growth
as it serves the replacement demand of new devices with affordable solutions (Source: 1Lattice Report). The used and
refurbished laptop market in key geographies such as India, USA and Europe is undergoing a significant shift towards organized
players. However, even the organised market remains fragmented with no player occupying >5% of the market and a large
number of small-scale outlets with limited reach and refurbishment capacity (Source: 1Lattice Report).

Our refurbished laptops are typically available at one – third the price of new devices and are as good as new devices both
functionally and aesthetically and come with one to three years warranty, that further enhance buyer confidence (Source:
1Lattice Report). This makes our refurbished laptops a strong and compelling proposition for a wide range of users seeking
reliable performance at a significantly lower cost. We have a strong online visibility, which is demonstrated by consistent
presence amongst top five search results on various search engines.

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Our operations are spread across 35 countries in North America, South America, Asia, Asia Pacific, Europe, Africa and Middle
East, as on September 30, 2024, and supported by five facilities situated in India, USA and UAE, each strategically located to
cater to regional demand, reduce freight costs, optimise delivery time and increase operational efficiency. We also have a
service network comprising in house engineers, field engineers, on site engineers and we also enable Value Added Resellers
and System Integrators to service our customers.

With a strong presence in domestic and international operations, “Electronics Bazaar” is dedicated to promoting digital
inclusivity by making technology accessible and affordable. This promotes and helps education, healthcare, artificial
intelligence adoption, affordable and reliable technology for start-ups, small and medium enterprises. We firmly believe that
reuse is the best form of recycling. Therefore, we promote eco – friendly practices by extending the lifecycle of ICT Devices
for further use by refurbishing such ICT Devices, reducing e– waste, making technology more sustainable and also helping
corporates achieve their sustainability goals.

As on September 30, 2024, we have a comprehensive portfolio of 4,996 SKUs that we offer. Owing to our scale, we are one of
the preferred partners for both ends of the value chain i.e. sales and procurement. For large corporations, we efficiently manage
high-volume outputs while ensuring compliance with global standards including data privacy. Our robust refurbishing
capabilities and streamlined processes allow us to offer competitive pricing. For Distributors and Value Added Resellers, we
ensure a consistent supply of wider range of quality ICT Devices, complemented by adjacent services such as product
warranties, after-sales support, competitive commercial terms, all supported by our large-scale and global operations.

Target based approach for implementation of extended producer responsibility (“EPR”) has been adopted in the E-Waste
(Management) Rules, 2022 which stipulate phase wise collection target to producers for the collection of e-waste, either in
number or weight, which shall be 60% of the estimated quantity of waste generation during FY23-24 and FY24-25 followed
by 70% during FY25-26 and FY26-27, 80% during FY27-28. This progressive approach aims to steadily improve recycling
rates and foster sustainable practices in e-waste management. (Source: 1Lattice Report). We have also received an “Extended
Producer Responsibility” certification from Central Pollution Control Board and “Responsible Recycling Version 3”
certification from SERI. We are also authorised to issue EPR certificates to our procurement partners by Central Pollution
Control Board which is required for sustainability compliance and can also be monetised.

Our extensive experience has allowed us to establish a strong market presence, making us a trusted name in the industry. At the
core of our business philosophy are trust and reliability. With nearly a decade of experience in the refurbished ICT Devices, we
have cultivated an ethos for delivering value while fostering long-term relationships with our clients. Our proven track record,
combined with a strong commitment to customer satisfaction and innovation, positions us as a trusted player in the refurbished
ICT market.

Strong global supply chain, established sourcing base with long tail of vendors and wide customer base

Our depth in procurement, refurbishment and sales puts us at a definite advantage. The pricing strength comes from our ability
to “buy better, refurbish better and sell better”. We have Value Added Reseller network, with our refurbished ICT Devices
being sold in 35 countries as of September 30, 2024. Our sales network comprises, 3,265 touchpoints in India and globally, as
of September 30, 2024.

This reach is further supported by VAR partners who sell to corporates and others. We are one of the preferred partners to
Value Added Resellers, distributors and other customers alike.

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Further, set out below is a map indicating our sales and procurement presence and our global footprint:

This multi-channel and multi-geography presence mitigates channel or geography specific risk.

Our facility in India is also a certified refurbishment facility for both Lenovo and HP and by virtue of which we are also a
certified refurbishment partner with them, which are top two global brands, in terms of market share of 24% and 21%,
respectively, as of CY 2023, and largest authorised refurbisher for Microsoft in India in terms of refurbishing capability as of
Fiscal 2024 (Source: 1Lattice Report). Additionally, we serve as ITAD partners of leasing companies, IT consulting companies
and banks as we meet their sustainability and data privacy requirements. Our refurbished ICT Devices are subject to periodic
audits by our customers, which ensures that our customers are able to confirm sustained quality of our facility and processes.
In addition to such audits by our customers from time to time, we also conduct in – house quality testing of our products to
ensure that the quality and standard of products remains in compliance with our customer’s expectations.

Additionally, we maintain a multi – channel procurement network in India and globally. As of September 30, 2024, we have a
procurement network comprising corporates, consulting companies, intermediaries, recyclers, refurbishment partners,
educational institutes, leasing companies, NBFCs, large format retail stores such as Vijay Sales and OEM brand stores such as
HP and Lenovo. We have a well – developed procurement network that contribute to the overall sourcing strategy. This
approach can enhance flexibility, reduce risk and foster innovation by leveraging a wide variety of resources.

Our other corporate vendors include organisation such as Tata Capital Limited, Steller Information Technology Private Limited
(BitRaser), HP, Lenovo and Microsoft.

Our longstanding relationships with established customers have contributed to our success thus far and will continue to be a
key driver of our future growth. They will not only help us expand our market share but also facilitate our entry into new
markets, further solidifying our position as one of the global leader in the refurbished ICT industry (Source: 1Lattice Report).

We have strong relationships with global brands such as HP and Lenovo. We help them run efficient and customer-friendly
buyback programs facilitating sale of new devices. This association also helps us with added advantages such as revenue
visibility, enhanced industry goodwill, greater customer trust and assurance of product quality. Further, our partnerships with
global brands such as HP and Lenovo as an authorized refurbishment partner provide us with added sourcing and sales
advantages. It enhances our credibility and further expands our market reach, allowing us to deliver significant value to our
customers.

We have established a robust supply chain that facilitates smooth operations from procurement of used ICT Devices to the
delivery of refurbished ICT Devices. This capability is reflected in our Restated Consolidated Financial Information,
demonstrating no inventory write offs and no bad debt, evidencing the quality of our relationships and processes and strength

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of our supply chain. This multi - channel approach ensures that we can cater to diverse customer needs, providing high-quality
refurbished products with ease and convenience across multiple touchpoints.

While ecommerce space for refurbished products is evolving in India, it has matured in European and North American markets
(Source:1Lattice Report). We have established a foothold in the ecommerce industry in North America and European markets
and are high-rated on multiple ecommerce platforms. To further enhance our brand recognition and boost sales, we have
invested in comprehensive marketing strategies through online channels. Our online strategies include search engine discovery
advertisements, lead generation campaigns, and promotion messages.

Similarly, our offline strategies include corporate tie-ups, brand collaborations, event participation, participation in and
sponsorship for the trade shows, print advertisements and in-store branding. This backed by our quality and service helped us
create repeat business from VARs and distribution partners.

A key driver of our success is our established and efficient supply chain, which ensures a consistent availability of wide range
of ICT Devices and timely deliveries to our customers. We have developed a streamlined process that encompasses all stages
of operations, from procurement and refurbishment to distribution, ensuring consistent quality at every phase.

Well - established refurbishing capabilities and state – of - art infrastructure, with focus on quality

We operate five refurbishing facilities with one facility located in Navi Mumbai, India; three in Sharjah, UAE; and one in
Texas, USA having a cumulative area of 58,127.82 sq. ft. We have one of the largest facilities among Indian ICT refurbishes,
with a high-level of integration (Source:1Lattice Report). Our facility in Sharjah, UAE is located in Sharjah Free Zone which
offers several benefits including in house accommodation to the employees. All our facilities are equipped with round-the-clock
surveillance, emergency alarm systems and advanced anti-theft sensors. The strategic positioning of these facilities near major
markets provides us with significant cost and logistical advantages, allowing for efficient operations and timely delivery. These
advanced facilities are equipped with technology and manpower, enabling us to handle high volumes of products efficiently
while ensuring quality control throughout the refurbishment process. This global presence allows us to serve customers in
multiple countries with ease and reliability, and also exploit huge global market opportunities.

All our refurbishing facilities have the capabilities to refurbish a wide variety of products, including laptops, desktops, premium
smart phones and tablets. This flexibility allows us to adapt quickly to market demands for specific product categories, ensuring
we meet customer needs efficiently. Each of our facilities is equipped with extensive refurbishing capabilities which include
not only screening and parts repair (L1 and L2 activities) but also motherboard repairs (L3 activities) along with keyboard
reprinting, paint, fabrication and cosmetic work. We are amongst few companies globally specialising in LCD repairs including
repolarisation and light guide plate (LGP) correction (Source: 1Lattice Report). This comprehensive approach ensures that each
device not only functions optimally but also meet aesthetic standards, providing our customers with devices that are of superior
quality and highly reliable. We have developed in house process for various aspects of refurbishment such as device screening,
refurbishment planning, quality control, inventory management and tracking of refurbishment process. We perform drive
wiping, drive degaussing, and hard drive shredding. The granularity of our operations presents us with a strong competitive
advantage and this model is difficult to replicate.

Further, we execute data sanitization procedures on devices in strict accordance with, among other prominent methods, R2 V3,
NIST 800 guidelines, US -DoD 5200, Peter Gutmann and US Army AR 380, while leveraging advanced BitRaser software for
data erasure. We have also obtained ISO 27001 certification, an international standard for information security management
systems, solidifying our commitment towards proper data sanitization and integrity.

For the year ended March 31, 2024, we refurbished 369,320 ICT Devices. To assure quality to our customers, we have identified
processes, which include screening of procured products, pre-repair checks, a 21-step refurbishing process, post repair quality
checks and packaging. For further details, please see “- Our Refurbishment Process” on page 181. Further, high-level cosmetic
skill set processes damaged pieces to like-new condition with trained and skilled technicians who are proficient in restoring the
ICT Devices to like original state with our Company’s multi-step processes. Furthermore, our IT systems are significant to our
business, and we continuously implement the latest technologies to support our operations. Additionally, we regularly conduct
training sessions to our employees which covers critical areas, including internal and external parts overview, aesthetic and
functional enhancements, advanced troubleshooting and LCD refurbishing. As of September 30, 2024, we have trained 610
employees and the employees received a cumulative total of 10,980 hours of training on building technical expertise. In
addition, we conduct regular workshops on topics such as health and safety, ergonomics, technical skills, software and firmware
updates and training on new tools and equipment. These trainings and workshop initiatives underscore our Company’s
commitment to maintain high – quality standards in refurbishment processes.

We continuously strengthen our expertise by providing various in-house trainings to our workforce to strengthen their skillsets
and keep them updated with the latest changes in the technologies and processes to maintain quality standards. These training
sessions cover several key areas, including an introduction to cosmetic checks (such as inspecting for scratches, fitting of parts,
finishing details, and screw placement), as well as functional diagnosis (such as testing the speaker, microphone, touchpad,
LED, battery, and other components) and overall refurbishment of devices.

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Our refurbishing infrastructure is equipped with the latest technology, ensuring we maintain quality standards throughout our
operations. Our facility in Navi Mumbai, India, adheres to internationally recognized quality management standards, including
ISO 9001:2015 for quality management, ISO 27001:2013 for information security, ISO 14001:2015 for environmental
management, and ISO 45001:2018 for occupational health and safety. We have also received an “Extended Producer
Responsibility” certification from Central Pollution Control Board. For facilities across the globe, we have obtained
“Responsible Recycling Version 3” certification from SERI. Such certifications highlight that our processes are not only
efficient but are also aligned with global best practices. We are also a government certified refurbisher for activities of
collection, segregation, refurbishment and dismantling e-waste.

Our facility in Navi Mumbai, India has also been audited by global team of HP and Lenovo and is also certified as authorised
HP and Lenovo refurbishment facility.

Well positioned to harness global shift to sustainability and growing focus on ESG

Since our commencement of refurbishing operations in 2014, we have established a strong foothold in the ICT Devices industry,
driven by a management team with a vast experience in this industry. Our expertise allows us to navigate the complexities of
the market and consistently deliver high-quality products.

The countries around the world are placing greater focus on Environmental, Social, and Governance (“ESG”) standards as
sustainability becomes a global priority. One pressing issue is the growing volume of electronic waste (e-waste), with only a
small portion currently being recycled (Source: 1Lattice Report). Refurbishing electronics offers a pricing coupled with
extension of useful life solution, helping to reduce e-waste by extending the life of devices (Source: 1Lattice Report). Our
refurbished ICT Devices, priced up to one third lower of new devices and backed by a one to three years warranty, provide
consumers with an option that is both environmentally responsible and economically advantageous. By refurbishing and
reintroducing electronics into the market, the demand for raw materials is reduced, and electronic waste is diverted from
landfills. This contributes to more sustainable consumption and production practices, aligning with the broader goals of the
circular economy. Through refurbishment, the environmental footprint of electronics is lessened, and valuable resources are
kept in use, supporting the shift away from a disposable culture. The refurbished electronics market offers a value proposition
for ESG wherein the environmental value is created by reusing and re-cycling parts which avoids emissions and material
extraction. Target based approach for implementation of EPR has been adopted in the E-Waste (Management) Rules, 2022
which stipulate phase wise collection target to producers for the collection of e-waste, either in number or weight, which shall
be 60% of the estimated quantity of waste generation during FY23-24 and FY24-25. followed by 70% during FY25-26 and
FY26-27, 80% during FY27-28. This progressive approach aims to steadily improve recycling rates and foster sustainable
practices in e – waste management (Source: 1Lattice Report).

The refurbished electronics market offers a value proposition for ESG wherein the environmental value is created by reusing
and re-cycling parts which avoids emissions and material extraction. (Source: 1Lattice Report) For example, the resources
needed to create one new laptop amount to 1,200kg of mined and consumed earth materials and 250-330 kgs of CO2e is emitted
during the manufacture of a new laptop. By opting for refurbished laptop, not only is resource consumption reduced, but e-
waste from disposed laptops which is typically disposed off in landfills is also avoided (Source: 1Lattice Report). From a waste
management perspective, it prevents electronic waste being created, which is typically disposed off in landfills. E-waste in
landfills can have several negative impacts on soil and surrounding areas such as contamination of groundwater, disruption of
local ecosystems, degradation of soil quality leading to a decline in biodiversity in the area. Further, the refurbishment industry
also creates job opportunities for skilled and unskilled labour (Source: 1Lattice Report). We adhere to stringent process control
guidelines and international industry standards at our facilities in India, including ISO 14001 and ISO 9001:2015. These
practices directly influence our capacity to issue EPR certificates.

Our pricing coupled with the eco-friendly nature of our refurbishing, provides a twin solution for affordability and sustainability,
which positions us well to harness the global shift to sustainable solutions. Our Company is actively promoting the recycling
of surplus IT assets, aiming to consolidate and standardize the unorganized refurbished electronics market. As a government-
certified refurbisher, the Company stands out for its commitment to sustainability and quality. Our EPR certificate issued by
the Central Pollution Control Board, reinforces its dedication to environmentally responsible operations. By actively pursuing
ESG compliance, our Company not only mitigates environmental impact but also positions to capitalize on evolving business
opportunities, markets such as Europe, provide incentives and benefits to companies that prioritize ESG standards (Source:
1Lattice Report).

Experienced management team and qualified personnel with significant industry experience

We are guided by an experienced leadership team, headed by our Promoter and Founder, Sharad Khandelwal, who has 29 years
of experience in the information and communication technology industry. Under his leadership, we have grown into one of the
leading players in the industry.

Our management team comprises qualified professionals, many of whom have extensive background in business development,
finance, operations, and other key areas. The senior management personnel bring a wealth of expertise in operations, design

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and development, finance, marketing, engineering, legal, human resources, and business development alongwith operating the
international business. This diverse experience enables us to efficiently manage our operations and strategically explore new
growth opportunities. For details, refer to “Our Management – Brief Profiles of our Directors” and “Our Management – Brief
profiles of our Key Managerial Personnel and Senior Management” on pages 207 and 220, respectively.

We are well-positioned to continue expanding our business and pursuing our vision of becoming the market leader in the
refurbished electronics industry. Our personnel policies are aimed towards recruiting talented individuals, facilitating their
integration, and promoting the development of their skills. In addition to regular compensation, statutory benefits and standard
insurance coverage, we have instituted the ESOP Scheme to motivate and incentivize our employees. We rely on our qualified
and experienced management to identify new avenues of growth and helps us to implement our business strategies in an efficient
and quick manner.

In addition to strong leadership, our workforce includes a skilled team of 894 refurbishing technicians as of September 30,
2024. This ensures consistent quality and productivity as we continue to scale our operations.

Track record of profitability and consistent financial performance

We have established a consistent track record of financial performance reflecting operational efficiency. For the six months
period ended September 30, 2024, and the financial years ending March 31, 2024, 2023, and 2022, our revenue from operations
stood at ₹6,079.62 million, ₹11,381.38 million, ₹6,595.42 million, and ₹5,204.95 million, respectively. Our financial growth is
further evidenced by continuous improvements in our balance sheet over the six months period ending September 30, 2024 and
last three fiscal years. This reflects our ability to sustain profitability while expanding operations.

The following table sets forth certain financial and operational information for the years / period indicated:

(in ₹ million, unless otherwise stated)

Particulars Six months period Fiscal 2024 Fiscal 2023 Fiscal 2022
ended September 30,
2024
Revenue from Operations (1) 6,079.62 11,381.38 6,595.42 5,204.95
Gross Margin (2) 1,026.22 1,401.52 1,011.45 616.51
Gross Margin (%) (3) 16.88% 12.31% 15.34% 11.84%
EBITDA(4) 633.69 849.04 500.40 346.70
EBITDA Margin (%) (5) 10.42% 7.46% 7.59% 6.66%
PAT(6) 352.12 523.05 324.28 217.70
PAT Margin (%) (7) 5.79% 4.60% 4.92% 4.18%
RoE (%) (8)* 17.76% 31.96% 28.97% 27.36%
ROCE (%) (9)* 8.43% 16.72% 17.91% 18.06%
Net Working Capital (no. of days) (10) 146 42 61 60
Property, plant and equipment (Gross) 15.95 31.97 60.65 51.73
turnover ratio (11)*
Revenue split by geography 6,079.62 11,381.38 6,595.42 5,204.95
- Within India 1,480.30 4,783.90 3,262.92 3,112.58
- Outside India 4,599.32 6,597.48 3,332.50 2,092.37
Volume of devices refurbished (no.) 2,59,628 3,69,320 2,48,135 1,95,651
(12)

No. of customers served (no.) (13) 3,265 3,252 1,833 1,263

No. of procurement partners (no.) (14) 447 356 265 157
*Not annualized.
.
Notes:
1. Revenue from operations as per Restated Consolidated Financial Information.
2. Gross Margin is calculated as revenue from operations as per Restated Consolidated Financial Information minus cost of materials consumed, purchases
of stock in trade and changes in inventories of finished goods and work-in-progress.
3. Gross Margin (%) is computed as material margin divided by revenue from operations *100.
4. EBITDA is calculated as restated profit before tax (before exceptional items) plus finance costs and depreciation and amortization expenses.
5. EBITDA Margin (%) is computed as EBITDA divided by revenue from operations*100.
6. Restated profit for the year as per Restated Consolidated Financial Information.
7. PAT Margin (%) is calculated as restated profit for the year divided by Revenue from Operation.
8. Return on Equity (%) is calculated as PAT attributable to owners of the Company as a % Shareholders’ equity.
9. ROCE is calculated as EBIT as a % of capital employed. EBIT is calculated as EBITDA minus depreciation and amortization and impairment of goodwill.
Capital employed including non controlling interest refers to sum of total equity plus borrowings plus current maturities of long term borrowings.
10. Net Working Capital (no. of days) are calculated by dividing net working capital by revenues from operation multiplied by 365. Net working capital
amount is calculated as current assets less current liabilities.
11. Property, plant and equipment (gross) turnover ratio is calculated by dividing revenues from operation by gross block value of property, plant and
equipment as per Restated Consolidated Financial Information.
12. Volume of devices refurbished (Nos) is calculated as sum of total numbers of ICT devices refurbished by the Company during the period.
13. No. of customers served (Nos.) is calculated as sum of customers invoiced by the Company during the period.

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14. No. of procurement partners (Nos.) is calculated as sum of procurement partners from which the Company had purchases during the period.

Our Strategies

Expanding our footprint and increase our market presence in India and other countries to capitalize on the industry
tailwinds

The global used and refurbished electronics market grew from US$ 169.9B in CY18 to US$ 207.4B in CY23, at a CAGR of
4%. By CY28, the market is expected to reach US$ 334.8 billion, with 10% CAGR as consumers and industries prioritize cost-
effective solutions. Similarly, the Indian refurbished market has seen significant growth, expanding from ~US$ 11.3B in FY19
to ~US$ 16.7B in FY24, and is projected to reach ~US$ 35B by FY29, at a CAGR of 16% over FY24-29 (Source: 1Lattice
Report).

The global refurbished personal computer market grew from US$ 9.7 billion in CY18 to US$ 14.4 billion in CY23, reflecting
an 8% CAGR, and is projected to reach US$ 38.3 billion by CY28, at 22%. Similarly, the Indian refurbished PC market grew
from US$ 0.2 billion in FY19 to US$ 0.8 billion in FY24, showing a 27% CAGR, and is expected to reach US$ 3.3 billion by
FY29, at a CAGR of 33%. A common trend in both the Indian and global markets is the increasing preference for refurbished
devices over “as-is used” devices. However, even the organised market remains fragmented with no player occupying >5% of
the market and a large number of small-scale outlets with limited reach and refurbishment capacity. In India, the organized
market share grew from approximately 5% in FY19 to 11% in FY24, with a robust CAGR of 33%. (Source: 1Lattice Report)

The demand for refurbished electronics is driven by various factors, including accelerated internet connectivity, access to
artificial intelligence and digital access, shift towards environmentally sustainable products, shift towards digital economy
including education and healthcare, affordability and cost effectiveness. Demand for refurbished electronics is on the rise in
emerging and developed markets (Source: 1Lattice Report).

With over a decade of experience in the ICT Devices refurbishment industry and modern and advanced facilities equipped with
the latest technology, we are strategically positioned to offer ICT Devices at competitive prices and bringing process efficiency.
This pricing leverage not only sets us apart from competitors but also reinforces our commitment to providing high-quality,
affordable products. Due to these cost advantages, we offer quality refurbished ICT Devices at affordable prices in India and
globally. By improving our offerings and providing a seamless customer experience, we aim to encourage clients to invest more
with each transaction. We aim to further increase this through strengthening relationships, enhanced customised product
features, and by expanding our service offerings, such as extended warranties, maintenance plans, and flexible financing
options.

Further, our expansion strategy involves tapping into both emerging markets and developed markets where the demand for
high-quality, affordable refurbished electronics is on the rise (Source: 1Lattice Report). In line with the growth in demand for
refurbished products, we intend to expand our presence both in India and globally. Historically, our customer base has increased
from 1,263 in Fiscal 2022 to 1,833 in Fiscal 2023 to 3,252 in Fiscal 2024 to 3,265 as on September 30, 2024 and going forward,
we plan to expand our customer base. We plan to penetrate deeper into geographies, establishing new relationships on the back
of established credentials and leveraging more on existing customer network. We also intend to identify new channels and use
cases to diversify and increase our customer base.

This expansion is supported by our facilities located in India, USA and UAE, which give us the flexibility to scale and meet
growing market demands efficiently and effectively access around 70% of global GDP from these strategic locations (Source:
1Lattice Report). Our facility in the USA serves North and South America, while our UAE facility provides access to Europe,
the Middle East, Africa, and the Asia-Pacific regions. Additionally, we have recently incorporated a subsidiary Electronics
Bazaar BV, in Netherlands and have an office to cater to and penetrate in the European market.

By deepening our penetration in existing markets and expanding in new markets, and expanding our customer base, we are well
– positioned to drive sustained growth. Our comprehensive approach ensures that we not only meet the immediate needs of our
clients but also create lasting relationships that fuel long-term business success.

By offering affordability coupled with quality, we intend to target retail consumers such as working professionals and students
and end customers such as large corporates, small and medium-sized businesses, education, start-ups and other institutions. We
plan to expand our presence globally by enhancing both our physical footprint and our online sales channels.

Enhancing procurement in India and other countries while parallelly strengthening brand relationships

We have established long term relationships with our procurement partners by offering value proposition and undertaking
synergetic business opportunities while also helping them achieve sustainability goals and addressing data privacy concerns.
Historically our total procurement partners increased from 157 in Fiscal 2022 to 265 in Fiscal 2023 to 356 in Fiscal 2024 to
447 as on September 30, 2024 and going forward we intend to expand our procurement network. We plan to leverage the

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existing procurement network to build new relationships and communicate our value proposition to a wider audience in order
to expand our procurement base even more.

Additionally, our associations with brands such as HP and Lenovo, helps them run efficient and customer-friendly buyback
programs facilitating sale of new devices. This association also helps us with added advantages such as revenue visibility,
enhanced industry goodwill, greater customer trust and assurance of product quality.

We also offer assured buy back programmes through brands enabling them to sell new devices and augmenting our procurement
strategy. We intend to expand this programme globally including in key economies such as USA, Europe and UAE.

Additionally, obtaining relevant certifications demonstrates our compliance with industry standards and regulations, fostering
trust among partners and clients. This credibility strengthens relationships, as stakeholders gain confidence in the quality and
reliability of our offerings. Our investment in sourcing and certification reflects a commitment to quality and sustainability,
deepening relationships and promoting long-term collaboration. By virtue of brand certifications from brands such as HP and
Lenovo for our refurbished products, we improve our market positioning, creating mutual benefits and opportunities for growth.

Focus on environmental, social, and governance (“ESG”) standards and expanding opportunities with OEMs

We are committed to maintaining high ESG standards, which are becoming increasingly crucial across the world including
India. Our focus on sustainability is demonstrated by our adherence to quality standards certifications and governmental
approvals from pollution boards for environmental compliance. These certifications underscore our commitment to eco-friendly
operations, while our refurbishment processes significantly contribute to reducing e-waste by extending the lifespan of
electronics. This directly aligns with global sustainability efforts and reduces the environmental footprint of our products.

By actively pursuing ESG compliance, we not only mitigate our environmental impact but also position ourselves to capitalize
on evolving business opportunities. Markets such as Europe, provide incentives and benefits to companies that prioritize ESG
standards (Source: 1Lattice Report). Additionally, our ESG commitment strengthens our value proposition to environmentally
conscious consumers and businesses, opening new revenue streams by catering to organizations seeking sustainable partners.
We intend to establish ourselves as a mainstream player in government initiatives by obtaining all necessary certifications and
registrations. Additionally, we intend to collaborate with government agencies to promote this vision and drive it forward
effectively.

As per the 1Lattice Report, France has introduced legislation to reduce the environmental footprint of digital technology. This
mandates that 20% of IT devices bought by organisations need to be refurbished, with a target of 40% by 2040. The legislation
is even more stringent in the public sector, targeting an increase of up to 50% by 2025. Similarly, The Irish Government, under
its “Buying Greener” Green Public Procurement Strategy and Action Plan, aims that by 2025, at least 80% of newly procured
ICT end-user products will be either refurbished or will meet other environmental standards. As global efforts to mitigate
climate change intensify, the refurbishment industry plays a key role in advancing sustainability. By extending product life
cycles, refurbishment reduces the need for raw material extraction and new production, cutting emissions and conserving
energy. This aligns with UN Sustainable Development Goals, promoting responsible consumption and reducing e-waste. Of
the 17 UN Sustainable Development Goals, we focus primarily on the following objectives:

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(Source: 1Lattice Report)

We practice refurbishing by repairing and not replacing parts, thereby reducing electronic waste, conserving resources, and
fostering a circular economy through the reuse of existing devices. With in-house repairing capabilities of parts and components
and reclaiming plastic parts using fabrication and paint allows us to give a greater yield. An integral part of our ESG
commitment is also encouraging digital access by making available quality IT products at affordable rates. The pricing
advantage also makes these products affordable to students, small businesses, and underprivileged sections of society, thereby
fostering digital inclusivity.

We also aim to expand our partnerships with OEM brands, with a focus on sustainability. These partnerships will enhance our
reputation as a trusted and capable refurbisher while strengthening our standing in ESG-compliant supply chains.

By partnering with us, we can offer OEM brands participation in a sustainability driven circular economy by reducing the
lifecycle environmental impact of their products and extending the usability of ICT Devices. Further, refurbishing operations
can help brands manage their end-of-life products, potentially lowering costs for disposal and meeting regulatory recycling
requirements.

We aim to unlock new growth opportunities, enter ESG-driven markets, and establish a sustainable competitive edge in the
global ICT Devices refurbishment industry. This will allow us to continue driving environmental impact reduction while tapping
into the increasing demand for responsible, eco-conscious business practices.

Our Business Operations

Our Presence

We are present across various countries and continents as depicted in the chart below –

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Online presence

In addition to the above, we have our own website (www.electronicsbazaar.com) in India and the United States for consumers
to showcase our products. Also, we have strong foothold on major ecommerce marketplaces and online B2B trade platforms
globally along with the social media presence through country specific and business specific dedicated social media pages and
offering target specific microsites. We have a strong online visibility, which is demonstrated by consistent presence amongst
top five search results on established search engines.

Our refurbishment process

In line with our focus to provide end – to – end solutions and to develop better control on our supply chain and improve our
margins, our refurbishing facilities have advanced capability to produce quality refurbished ICT Devices. We have equipped
our facilities with in-house parts and components (including LCDs) with restoration, fabrication and paint capabilities to
improve our cost efficiency, reduce dependency and provide better control on production time and quality of critical
components.

We follow a comprehensive process of receiving, inspecting, repairing, and shipping refurbished devices across our various
facilities. The ICT Devices are data sanitized and undergo a thorough inspection for cosmetic and functional issues. If any
defects are identified, the devices are directed to the appropriate department whether for painting, fixing physical damage, or
more advanced repairs.

After the initial inspection and diagnosis, ICT Devices are handed over to our L2 repair team, where engineers address hardware
and cosmetic issues, install operating system, repair faulty parts, and conduct performance tests. Once repairs are completed,
the devices go through a detailed quality control (QC) check to ensure the devices meet the functional and cosmetic standards.
Devices that pass the QC checks are cleaned, packed, and stored in the warehouse, ready for shipment.

Additionally, we offer refurbishing capabilities comprising L1, L2 and L3 repairs, which ensures that our refurbished ICT
Devices meet both performance and aesthetic expectations. This includes:

• Software Reinstallation: Ensuring the operating system and necessary software are up to date.

• Small Parts Replacement: Replacing components such as hinges, keys, and connectors.

• Printed Circuit Board (PCB) Repair: Performing advanced repairs at the PCB level to restore functionality.

• Cosmetic Refurbishment: Enhancing the appearance of the product to meet quality standards.

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Set forth below is the process followed for refurbishment of the products:

Our refurbished ICT Devices Basket

Our refurbished ICT Devices basket covers a wide range of ICTs, including laptops, desktops, tablets, , servers, premium smart
phones, mobile workstations, and accessories.

Set forth below is the data in relation to revenue contribution from our ICT Devices for the years/period indicated:

(₹ million, unless otherwise stated)

Particulars As of six months Fiscal 2024 Fiscal 2023 Fiscal 2022
period ended
September 30, 2024
Amount Percentag Amount Percentag Amount Percentag Amount Percentag
e of e of e of e of
revenue revenue revenue revenue
from from from from
operations operation operations operations
Revenue from sale of laptops 4,595.38 75.59% 7,724.16 67.87% 5,274.58 79.97% 4,638.83 89.12%
Revenue from others* 1,484.24 24.41% 3,657.22 32.13% 1,320.84 20.03% 566.12 10.88%
Total revenue from 6,079.62 100.00 11,381.38 100.00 6,595.42 100.00 5,204.95 100.00
operations
*Includes desktops, tablets, servers, premium smart phones, mobile workstations and accessories.

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The below table depicts the differences in the prices of the refurbished products supplied in comparison to the prices of the new
products:

In India

Sr. Model Price offered by the Price of new Savings (in ₹) % Saving
No. Company (in ₹) product (in ₹)
1 Dell Latitude 7490 - Core i5 8th / 8GB / 512 GB SSD 23,250.00 85,000.00 61,750.00 73.00%
/14”
2 HP Elitebook 840 G5 - Core i5 8th / 8GB / 512 GB 26,900.00 103,000.00 76,100.00 74.00%
SSD /14”
3 Lenovo Thinkpad T 480 - Core i5 8th / 8GB / 512 22,500.00 92,000.00 69,500.00 76.00%
GB SSD /14”
4 Dell 7310 (2 in 1)- Core i7 10th/16GB/512GB /14” 35,000.00 165,800.00 130,800.00 79.00%
5 HP Probook 440 G5 - Core i5 8th / 8GB / 512GB SSD 20,000.00 59,000.00 39,000.00 66.00%
/ 14”
(Source: 1Lattice Report)

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Outside India

Sr. Model Price of new Price offered by us Savings (in US $) Price gap (in
No. product (in US $) (in US $) %)
1 HP EliteBook 840 G7 Intel i7 1,069.00 353.00 716.00 67.00%
10610U 16GB RAM, 512GB
SSD Win 11 Pro
2 Dell 5420 14 Core i7-1185G7 999.00 302.00 697.00 70.00%
16GB RAM 512GB SSD W10
Pro (Renewed)
3 Lenovo 14” Thinkpad T14 Gen 1,200.00 360.00 840.00 70.00%
i7-10610U 16GB 512 GB SSD
W11P (Renewed)
4 Apple MacBook Air 2020 13.3- 1,300.00 404.00 896.00 69.00%
inch i5, 8GB RAM, 512GB
* As of September 30, 2024, on various online market places
** As of September 30, 2024, on www.electronicsbazaar.com
(Source: 1Lattice Report)

Our Refurbishing Facilities

We have five refurbishing facilities which are strategically located in India (Navi Mumbai), UAE (Sharjah) and USA (Texas).
Our modern facilities are equipped with quality machinery, assembly lines and full power backup for our Indian facilities for
100% capacity that enable us to meet the quality requirements of our customers in a timely manner.

Details of our facilities are set out below:

Sr. No. Facility Area (in square feet) Year of commencement of operations
1. Navi Mumbai, India 25,600.00 2023
2. Dallas, Texas, USA 11,000.00 2024
3. Sharjah, UAE – I 4,305.56 2017
4. Sharjah, UAE – II 4,305.56 2022
5. Sharjah, UAE – III 12,916.70 2023
Total 58,127.82

Facility at Navi Mumbai, India

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Facility at Sharjah, UAE

Customers and exports

We have a diversified customer base including OEMs across geographies. In Fiscal 2024, top 10 customers of our Company
represented 55.77%, respectively, of consolidated revenue from operations of the Company. The following table sets forth the
names of our top 10 customers in Fiscal 2024:

Particulars Fiscal 2024

Amount (in ₹ million) % of total revenue from operations
Customer 1 1,966.22 17.28%
Customer 2 1,298.72 11.41%
Customer 3 751.32 6.60%
Customer 4 589.90 5.18%
Customer 5 463.45 4.07%
Customer 6 320.77 2.82%
Customer 7 307.85 2.70%
Customer 8 236.92 2.08%
Customer 9 221.69 1.95%
Customer 10 190.05 1.67%
Total 6,346.89 55.77%
*Names from our top 10 customers have not been included in this Draft Red Herring Prospectus due to non-receipt of consent from such customers to be
named in the Offer Documents.

In Fiscal 2024, we exported our ICT Devices and delivered our services to 35 countries in North America, South America,
Asia, Asia – Pacific, Europe, Africa and Middle East.

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The table set forth below provides revenue by geographical segment as a percentage of our revenue from operations during six
months period ended September 30, 2024, and for Fiscal 2024, Fiscal 2023 and Fiscal 2022.

(₹ million, unless otherwise stated)

Revenue For six months period Fiscal 2024 Fiscal 2023 Fiscal 2022
by ended September 30,
Geographi 2024,
cal % of % of Year on % of Year on % of
Segment revenue revenue year revenue year revenue
Amount Amount Amount Amount
from from growth from growth from
operations operations (%) operations (%) operations
Within 1,480.30 24.35 4,783.90 42.03 46.61 3,262.92 49.47 4.83 3,112.58 59.80
India
Outside 4,599.32 75.65 6,597.48 57.97 97.97 3,332.50 50.53 59.27 2.092.37 40.20
India*
Total 6,079.62 100.00 11,381.38 100.00 - 6,595.42 - 100.00 5,204.95 100.00
*Includes North America, South America, Asia, Asia-Pacific, Europe, Africa and Middle East.

Devices Management and Procurement of devices

We source the devices from domestic markets for Indian operations and for our international operations, we source the devices
from across the globe. All our suppliers are independently sourced by us. For our suppliers in India, we conduct evaluation to
assess the suppliers in terms of adherence to timelines / schedules and quality. We also undertake pre-purchase inspection to
assess the quality of the products of the suppliers to arrive at procurement price and commercial terms. At times, we make large
purchases of the products from particular supplier(s) because of their pricing, quality and strategic advantages. We also have
long term procurement relationships with global and Indian suppliers wherein procurement happens on purchase order basis
with respective commercial terms.

We procure our devices from various countries as depicted in the chart below –

The devices are primarily transported by multiple modes of transport. We keep long list of suppliers with us, to ensure consistent
procurement of good quality inventory, enabling stable and consistent refurbishment and sales.

Our refurbished ICT Devices are stored on-site at our facilities and at various warehouses.

The following table sets forth the details of top 10 suppliers of the Company in Fiscal 2024:

Particular* Fiscal 2024

Amount (in ₹ million) As a % of the cost of total inventory
Supplier 1 2,881.60 24.48%

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 Particular* Fiscal 2024
Amount (in ₹ million) As a % of the cost of total inventory
Supplier 2 1,661.70 14.12%
Supplier 3 694.04 5.90%
Supplier 4 601.37 5.11%
Supplier 5 565.18 4.80%
Supplier 6 467.96 3.97%
Supplier 7 306.48 2.60%
Supplier 8 288.85 2.45%
Supplier 9 271.50 2.31%
Supplier 10 185.94 1.58%
Total 7,924.63 67.31%
*Names of our top 10 suppliers have not been included in this Draft Red Herring Prospectus due to non-receipt of consent from such suppliers to be named in
the Offer Documents.

Distribution and Logistics

Once the ICT Devices are refurbished, we package these to the customers with our branding for the customers. We engage
third-party transport service providers to transport products from our facilities or warehouses to our customers. We have
arrangements with third party logistics providers for transportation of our products.

Customer Service

We have a dedicated customer service team to resolve issues related to the ICT Devices. The consumers may log complaint /
query via call centre or Value Added Resellers, online via our website and dedicated customer support email.

Our team strives to acknowledge all complaints and queries promptly within a reasonable timeframe. We have a smooth
warranty programme which provides for the quick resolution to most of the queries/issues of the consumers.

Brand Building and Marketing

We have dedicated sales and marketing teams based out of multiple locations globally. As of September 30, 2024, our sales
and marketing teams comprised 95 members. Our sales and marketing teams’ approach is to identify opportunities and
customers to build new relationships and continuously engage with existing customers to deepen our relationship resulting in
wider customer base and consistent sales growth.

Information Technology

We have developed in house process for various aspects of refurbishment such as device screening, refurbishment planning,
quality control, inventory management and tracking of refurbishment process. These include our in house developed Inventory
Management System (“IMS”). The IMS tracks each step of a device’s physical processing in real time, enabling precise location
identification across stages such as L1, L2, L3, LCD, Paint & Fabrication, Packing, and QA. The following provides the
processes undertaken by IMS:

1. Receiving and Uploading: Electronics Bazaar receives stock from vendors. Bulk or individual SKUs are uploaded into the
system.

2. Stock Assignment: Items are assigned to engineers for processing.

3. Initial Screening: Devices undergo entry-level screening.

4. Refurbish Devices: the devices are categorized into L1 and L2 and further segregated into different sections such as QC,
Paint, LCD, L3, Fabrication, Packing, and QA for processing.

Each step is meticulously recorded in IMS, ensuring seamless tracking and operational transparency.

The key functions of our IT team include establishing and maintaining enterprise resource planning systems and infrastructure
services to support our business requirements, maintaining secure enterprise operations through, among others, risk assessment
and identifying emerging technologies which may be beneficial to our operations. We are currently using a third-party enterprise
resource planning solution, which assists us with various functions including production administration control, sales,
maintaining the chart of accounts records for finance and IT departments and maintaining vendor master records, among others.

Information security is one of our key focus areas. Our agreement with our cloud services provider guarantees uptime and
access to data stored on the server is provided to authorized users only through dedicated firewalls and secure VPN gateway.
User access management best practices are governed through our IT policies and followed and reviewed on a regular basis.

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