Gravita India climbs ~4% on starting aluminium recycling plant in Senegal

10 Oct 2022 , 11:56 AM

Gravita India Limited announced that its step-down subsidiary in Senegal, West Africa, has begun commercial production of aluminium from a new recycling facility with an annual capacity of roughly 4,000 MTPA.

The expanded capacity is expected to generate additional revenue of around Rs60 crore per year with a gross margin of 20%.

The Group has committed around Rs3.50 crore in the procurement and commissioning of this new Recycling Plant, which was funded through internal corporate accruals.

The company will get local aluminium scrap for the purpose of production from this plant, and it will serve the demands of aluminium die-casting component manufacturing businesses in the auto and FMCG sectors in China, Japan, and Vietnam.

Gravita Group is one of the world's most well-known recycling organisations, and the increase of this plant's capacity will enable the company to modify its sales mix by boosting the contribution of its aluminium sector.

At around 11.51 AM, Gravita India was trading at Rs354.90 up by 3.67% from its previous closing of Rs342.35 on the BSE. The scrip opened at Rs337.05 and touched intraday high and low of Rs362.80 and Rs337.05 respectively.

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