A fact that many Dilli wallas would probably not be aware about is, Saddi Dilli (New Delhi) is also home to Asia’s biggest scrap market. This Delhi scrap market also is ironically the largest business hub in Asia. The businessmen deal in everything starting from a pin to plane (in scraps of course), they however specialize in tractors, gypsy’s / jeeps, two wheeler’s, four wheelers and cranes, the businessmen here are raking in profits with margins going up to 200 percent.
In 2010, after some radioactive scrap was found in one of the scrap yards, the market was in the news for all the wrong reasons. The ‘Junk Market’ where around 3,500 units are working has an annual turnover which is exceeding INR 6,000 CR.
Initially, this scrap hub was situated in Motiya Khan near Sadar Market where around 500 units were working. But, in early seventies, it was shifted to Mayapuri in West Dilli for security reasons; the place where it stands today is called ‘Khazan Basti’. Mayapuri at that time was fully surrounded by jungles and only 20 scrap traders choose to shift here. The remaining traders are still operating from the same area which now takes the second spot.
The area of Mayapuri was later developed into an industrial hub by the Delhi Development Authority (DDA). Different blocks devoted to different industries were developed and the scrap industry was established in ‘D’ block. But, today, all kinds of industries are situated in all blocks. As business fraternity has its own way of function, there are two main associations — Mayapuri Ball Bearing Association and Mayapuri Motor Parts Association — but, major business volume comes from tractors, gypsy’s, crains and ball bearing supporting both import and export business.
There are around 500 industrialists who deal in tractor scrap but they have their own way of trade. They generally don’t prefer to sell tractors as scrap, they instead prefer to sell tractor parts in auto markets which can be reused in other tractors.
However, there are around 1,000 scrap dealers in the region who deal have smaller margins. Such dealers buy scrap in auction and sell iron to the firms who use such metals in their manufacturing units. They even sold it to the companies who use such iron in making bars widely used in the real estate sector. Such a dealer working on lower margins is able to generate an annual turnover of around INR 50 lac to INR 100 CR.
Some of these dealers import scrap from China, US and Europe as well and sell them in the local market, which has high demand for it.
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