Gravita India Limited has announced a major expansion of its recycling operations at Mundra, Gujarat, with a substantial investment of Rs 49.00 Crores. The expansion significantly enhances the company's lead recycling capabilities and reinforces its position as a leading player in the recycling sector.

Regulatory Disclosure and Compliance

The company has formally disclosed the capacity addition under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was submitted to both BSE and NSE, demonstrating the company's commitment to regulatory compliance and transparency.

Capacity Enhancement Details

The expansion focuses on increasing the lead recycling capacity at the existing Mundra facility. The enhancement represents a significant boost to the company's production capabilities, with existing capacity being close to full utilization.

Strategic Investment and Funding

The company has invested approximately Rs 49.00 Crores for the procurement and commissioning of the expanded recycling plant. The entire investment has been funded through the company's internal accruals, demonstrating strong financial management and cash generation capabilities.

This capacity enhancement aligns with the company's long-term strategy to strengthen its recycling capabilities and meet growing domestic and international demand for sustainable lead products.

Operational Advantages and Market Position

The expanded capacity will enable Gravita to improve operational efficiencies, optimize logistics, and better serve key export markets. The Mundra plant's strategic proximity to the port continues to provide significant advantages in sourcing raw materials and serving global customers.

The expansion reinforces the company's commitment to circular economy principles while strengthening its ability to meet increasing demand for high-quality recycled lead in a responsible and sustainable manner.

Company Profile and Global Presence

Gravita operates as a leading global recycling company with an extensive manufacturing footprint and international reach.

The company's rich recycling heritage spans over three decades, with operations across 6 business verticals and a presence in more than 70 countries globally.

Gravita India Limited has announced the signing of a binding term sheet for the proposed acquisition of up to 100% equity stake in Rashtriya Metal Industries Limited (RMIL) for approximately Rs. 565 crores. The company made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, marking a significant strategic expansion into the copper manufacturing sector.

Transaction Structure and Timeline

The proposed acquisition involves purchasing shares from existing shareholders of RMIL through a Share Purchase Agreement (SPA). Upon completion, RMIL will become a subsidiary of Gravita India Limited, creating opportunities for expansion into the copper vertical and increasing the share of non-lead business in the company's portfolio.

Target Company Profile and Operations

Rashtriya Metal Industries Limited stands as one of India's most reputed manufacturers of copper and copper alloy products, including strips and coils. The company operates an integrated manufacturing facility in Sarigram, Gujarat, spanning 58,287 square meters with a production capacity of 31,200 MTPA.

Financial Performance and Market Presence

RMIL has demonstrated strong financial performance with substantial international presence. The company exports to multiple countries including UAE, USA, Thailand, Sri Lanka, Kenya, Indonesia, Oman, and Saudi Arabia, representing approximately 40% of its business operations.

Strategic Rationale and Business Synergies

The acquisition aligns with Gravita India's strategy to diversify its business portfolio and expand into new verticals. The transaction is expected to create strong operating synergies with existing plants across procurement, logistics, and sales operations. Additionally, it provides opportunities for backward integration and reduces dependence on lead-based business operations.

The transaction remains subject to completion of due diligence, execution of definitive documentation, receipt of necessary regulatory and other approvals, and satisfaction of customary closing conditions. The company expects the deal to strengthen its position in the metals recycling and manufacturing sector while enhancing its global market presence.