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.

GRP Ltd , a leading player in the rubber industry, has announced significant changes to its board composition and key appointments following its 51st Annual General Meeting (AGM) held on July 25, 2025. The company has made strategic moves to strengthen its leadership team and corporate governance structure.

Appointment of Non-Executive Non-Independent Director

Rajendra V. Gandhi, a veteran with over 50 years of experience in the rubber industry, has been appointed as a Non-executive Non-Independent Director of GRP Ltd. Gandhi, who holds a B.Tech degree from IIT Mumbai, brings a wealth of knowledge and expertise to the board. His appointment is expected to provide valuable insights and guidance to the company's strategic direction.

Reappointment of Executive Director

Hemal H. Gandhi has been reappointed as an Executive Director for the period from August 22, 2025, to March 31, 2028. With degrees in Human Development and Developmental Counselling, Hemal Gandhi leads the company's Polymer Composite and Custom Die Form verticals. She also oversees key functions including Human Resources, Corporate Communications, and CSR activities. Her reappointment ensures continuity in these critical areas of the company's operations.

New Independent Director

Belur Krishna Murthy Sethuram has been appointed as an Independent Director for a five-year term from May 9, 2025, to May 8, 2030. Sethuram brings 38 years of experience in chemical and allied industries to GRP Ltd. His expertise is further evidenced by his role as an Independent Director in three other listed companies within the plastic and chemical segment.

Appointment of Secretarial Auditor

In a move to enhance its corporate governance practices, GRP Ltd has appointed Yogesh D. Dabholkar & Co. as the Secretarial Auditor for five consecutive financial years from 2025-26 to 2029-30. This appointment ensures compliance with regulatory requirements and maintains transparency in the company's secretarial practices.

Shareholder Approval and Voting Results

The company reported that all resolutions proposed at the AGM were passed with the requisite majority. The voting results showed strong shareholder support for these appointments and changes, with most resolutions receiving over 99% votes in favor.

These board changes and appointments reflect GRP Ltd's commitment to strengthening its leadership team and corporate governance structure. By bringing in experienced professionals and ensuring continuity in key positions, the company aims to drive growth and maintain its competitive edge in the rubber industry.

The market will be watching closely to see how these new appointments and reappointments contribute to GRP Ltd's strategic direction and performance in the coming years.