GRP Ltd has taken a significant step towards sustainable waste management by commencing the commercial production of eco-friendly tyre recycling products. This move aligns with the company's commitment to environmental sustainability and marks its entry into the growing market for tyre waste management solutions.

New Product Line

The company has officially launched a range of sustainable products derived from end-of-life tyres. According to GRP's filing with the stock exchanges, the new product line includes:

1. Tyre Pyrolysis Oil
2. Recovered Carbon Black
3. Char
4. Recovered Steel Wire

These products represent GRP's efforts to transform tyre waste into valuable, reusable materials, contributing to a circular economy in the automotive and industrial sectors.

Launch Details

GRP announced that the commercial production of these eco-friendly products commenced on August 22, 2025. The company aims to cater to both domestic and international markets with these sustainable solutions.

Strategic Expansion

This launch follows GRP's earlier announcements on August 2, 2024, and March 25, 2025, regarding the expansion of their capacities in other categories under Tyre Extended Producer Responsibility (EPR). The move into tyre recycling products represents a strategic diversification of GRP's product portfolio, potentially opening up new revenue streams and market opportunities.

Environmental Impact

By producing sustainable solutions for tyre waste management, GRP is addressing a significant environmental challenge. End-of-life tyres are a major source of pollution, and recycling them into useful products can help reduce landfill waste and the environmental footprint of the automotive industry.

Market Implications

The entry of GRP into the eco-friendly tyre recycling market could position the company as a key player in the sustainable materials sector. As global emphasis on environmental sustainability grows, GRP's new product line may attract environmentally conscious customers and potentially lead to increased business opportunities.

GRP's strategic move into sustainable tyre recycling products demonstrates its adaptability to evolving market demands and environmental regulations. Investors and industry observers will likely watch closely to see how this new venture impacts GRP's financial performance and market position in the coming quarters.

GRP Limited , a leading manufacturer of reclaimed rubber and other recycled products, reported a 2% year-on-year decline in total income to Rs. 1,247.00 million, down from Rs. 1,267.00 million in the same period last year. The company faced headwinds due to export challenges and raw material cost pressures, particularly in its key butyl reclaim rubber segment.

Export Challenges and Volume Reduction

The company experienced a 7% volume reduction during the quarter, attributed to external market headwinds and operational downtime for plant upgrades. Export revenues declined by 9% due to tariff-related uncertainties in key overseas markets and port congestion challenges. However, the domestic business showed resilience with a 5% growth.

Profitability Impact

EBITDA fell by 18% to Rs. 109.00 million, with margins dropping to 8.7% from 10.5% in the prior year. Profit after tax decreased significantly to Rs. 17.00 million from Rs. 44.00 million.

Raw Material Cost Pressures

GRP Limited cited sustained inflation in raw material costs for automotive inner tubes, particularly affecting butyl reclaim production. This segment, which constitutes 35% by volume and 44% by value of total operations, faced significant margin pressure due to supply constraints and increased competition from new capacities in countries like Pakistan and Egypt.

Tariff Impact and Market Dynamics

Managing Director Harsh Gandhi noted that approximately 5% of quarterly volumes were impacted by newly implemented tariffs affecting North American tyre demand. This primarily affected markets serving North American tyre demand, including Mexico, Thailand, Indonesia, and some Chinese customers.

New Projects and Diversification

Despite challenges, GRP Limited made progress on several fronts:

1. The company's crumb rubber plant became operational last quarter.
2. The first phase of the tyre pyrolysis oil project is undergoing cold trials, with commercial operations expected to begin in Q2.
3. Technology for manufacturing recovered carbon black has been finalized, with commercial operations targeted for the end of the fiscal year.

Renewable Energy Initiatives

The board approved investments in additional solar power generation capacity for Gujarat and Maharashtra manufacturing units, aiming to achieve 50% renewable energy use by 2028.

Future Outlook

While facing near-term challenges, GRP Limited remains optimistic about future quarters. The company is focusing on:

1. Executing new technology for reclaimed rubber production.
2. Growing the share of advanced reclaimed rubber products developed using a low GHG emission process.
3. Successfully commissioning the end-of-life tyre to energy business by the end of the fiscal year.
4. Scaling the plastic recycling business to achieve profitability.

GRP Limited expects revenues of Rs. 125.00-140.00 crores once the entire 30,000-ton pyrolysis capacity is fully commissioned, demonstrating its commitment to long-term growth and significant scaling of recycling operations.