Indian global recycling company- Gravita commenced operations of its new Battery recycling unit at Mundra Port, Gujarat.
In a regulatory filing at the BSE, the company said, “In Phase-I, 19,500 MTPA plant is strategically located at the Mundra Port and is equipped with state-of-the-art facility facilities including the latest technology and automated processes.”
Gravita is expecting an increase in the share of higher-margin business from the key overseas market across Lead, Aluminium and Plastic recycling segments. Closer proximity to the port will increase the efficiency of operations as import of scrap and export of finished goods will be carried out using the same port. This will result in optimization of logistics cost coupled with a reduction in the working capital cycle of the company.
Overall, the plant is well-positioned to cater to the growing demand from overseas markets and with higher operational efficiency it is expected to further enhance the profitability of the company.
The Company has incurred capital expenditure of Rs 32 crore for setting up of the Phase-I of the facility for which Rs 26 crore has been funded through external borrowings and remaining by internal accruals. Going forward, the company has plans to incur additional capital expenditure of Rs 30 crore on this facility to increase the capacity of this plant from 19,500 MTPA to 48,000 MTPA.
The new plant is an important milestone for Gravita Group and management remains fully committed to growing its business by investing in expanding its operations and building capability to tap the growing opportunities arising from the increased awareness of recycling.
Gravita India touched a 52-week high of Rs 249.90 and was quoting at Rs 245, up by Rs 10.30 per share, or 4.39 per cent on the NSE at 10:11 am.