Gravita India Ltd Management Discussions

<dhheadManagement Discussion and Analysis Report 2025</dhhead

ECONOMIC REVIEW

The global economy in FY 202425 presents a picture of resilience amid mounting challenges, with growth projected to decelerate from 3.3% in 2024 to 2.9% in 2025 according to the latest OECD projections. This slowdown reflects the impact of heightened trade policy uncertainty, elevated interest rates and persistent geopolitical tensions that have dampened business confidence and investment decisions worldwide. Advanced economies are expected to grow at a modest 1.8% in 2025, while emerging markets maintain relatively stronger momentum at approximately 3.7%, though both represent downward revisions from earlier forecasts. Global inflation is gradually moderating from 4.5% in 2024 to an estimated 3.5% in 2025, supported by weaker commodity prices and softening demand, though it remains above prepandemic levels. The US economy is projected to slow significantly from 2.8% growth in 2024 to 1.6% in 2025, while Chinas growth is expected to moderate to 4.7% as structural challenges persist India stands out as a bright spot, maintaining robust growth at 6.3% in FY26, positioning it as the fastestgrowing major economy despite some moderation from previous years.

Key Challenges and Risks

The global economic landscape faces unprecedented challenges driven primarily by escalating trade tensions and policy uncertainty, with effective tariff rates reaching levels not seen in a century. Geopolitical risks continue to fuel volatility, particularly from ongoing conflicts in Europe and the Middle East, which have disrupted supply chains, elevated energy prices and contributed to persistent inflationary pressures. Central banks worldwide are navigating a complex monetary policy environment, with most maintaining restrictive stances despite declining inflation, as evidenced by policy rates remaining well above prepandemic levels across major economies. Financial market volatility has intensified due to trade policy shocks and uncertainty, leading to delayed investment decisions and reduced business confidence. Emerging markets face additional headwinds from tighter global financial conditions, elevated debt burdens and reduced export demand from advanced economies, while structural challenges including demographic constraints and supply chain fragmentation pose mediumterm growth risks. The threat of renewed trade wars and potential retaliatory measures could further derail growth prospects, with the World Bank estimating that a significant escalation in trade restrictions could reduce global growth by 0.5% in 2025.

Outlook

The outlook for the global economy remains cautiously optimistic but heavily dependent on policy coordination and the resolution of current uncertainties, with growth expected to stabilize around 2.9% in both 2025 and 2026. Inflation is projected to continue its gradual decline toward central bank targets, with G20 economies seeing headline inflation moderate from 6.2% to 3.6% in 2025 and further to 3.2% in 2026. This disinflationary trend is expected to provide room for monetary policy easing in most regions,

though the pace will vary significantly across economies. Emerging markets are anticipated to demonstrate greater resilience through robust domestic demand, diversification of export markets and increased investment in digital infrastructure and innovation, while advanced economies face slower growth trajectories constrained by structural headwinds and demographic challenges. The recovery in global trade is expected to be gradual, with trade growth projected to reach only 2.4% in 2026, well below the prepandemic average of 4.6%. Key upside risks include potential resolution of trade disputes through multilateral cooperation and successful implementation of structural reforms, while downside risks encompass further escalation of geopolitical tensions, financial market disruptions and renewed inflationary pressures that could force more restrictive monetary policies. The trajectory will largely depend on governments ability to foster international cooperation, maintain stable trade environments and implement policies that support both shortterm stability and longterm sustainable growth.

Source:

1. https://www.imf.org/en/PublicationsAVEO/lssues/2025/04/22/worldeconomicoutlook april2025

2. https://www.ey.com/enus/insights/strategy/globaleconomicoutlook

3. https://www.oecd.org/en/about/news/pressreleases/2025/06/globaleconomicoutlook shiftsastradepolicyuncertaintyweakensgrowth.html

4. h tt p s://clea rtax.i n/s/worldg dprankinglist

5. https://www.bofbulletin.fi/en/2024/4/impactofgeopoliticalsurprisesoneuroarea infla tionva riesca sebycase/

6. https://www.cnbctv18.com/economy/worldbankcutsglobalgrowthforecastto23for 2025indiastillabrig htspotat63infy2619618711.htm

7. https://unctad.org/news/globaleconomyunderpressurecouldslow23signalsuntrade anddevelopment

8. https://www.spglobal.com/en/researchinsights/marketinsights/geopoliticalrisk

9. https://www.ecb europa.eu/press/pr/date/2025/html/ecb.mp250605~3b5f67d007 en.html

10. https://www.oecd.org/en/publications/oecdeconomicoutlook.volume2025issue 183363382en.html

11. https://www.morganstanley.com/insights/articles/economicoutlookmidyear2025

12. https://www.un.org/development/desa/dpad/publication/worldeconomicsituationand prospectsasofmid2025/

13. https://indianexpress.com/article/business/worldbankindiafy26gdpgrowthforecast lowers202510059042/

14. https://www triodosim.com/articles/2025/emergingmarketsmidyear2025investment outlook

15. https://www.focuseconomics.com/blog/globalinflationrates/

16. http s://www.g lobalrates.com/en/interestrates/centralbanks/

India

Indias economy demonstrated remarkable resilience in FY 202425, achieving a GDP growth of 6.5% despite global headwinds and domestic challenges. While this represented a fouryear low compared to the previous years 9.2% growth, it maintained Indias position as the worlds fastestgrowing major economy. The economy showed strong quarterly momentum, with Q4 FY25 recording an impressive 7.4% growth, the highest among all four quarters of the year. The services sector emerged as the primary growth driver, expanding at 8.3% and contributing 55.3% to total GVA, while manufacturing grew at a modest 4.5% and agriculture sector recorded 4.6% growth. Inflation remained wellcontrolled at 4.6% for the full year, the lowest since 201819, with March 2025 witnessing a further decline to 3.34% yearonyear. The fiscal deficit improved significantly to 4.8% of GDP from 5.6% in the previous year, while foreign direct investment inflows surged 14% to $81.04 billion, with the services sector attracting the highest FDI equity inflows.

Outlook

The outlook for Indias economy in FY 202526 remains cautiously optimistic, with growth projections ranging between 6.3% to 6.5% across various international agencies, positioning India to continue as the fastestgrowing major economy globally. The Reserve Bank of India has adopted a supportive monetary stance, cutting the repo rate by 50 basis points to 5.5% in June 2025 and shifting to a neutral policy stance to maintain growth momentum amid global uncertainties. Key growth drivers include resilient private consumption, robust government infrastructure spending and strong services exports, particularly in technology and telecommunications where India ranks as the secondlargest global exporter. However, challenges persist from global trade tensions, potential US tariff impacts on merchandise exports and the need for sustained private investment to complement government capital expenditure. The governments focus on fiscal consolidation, infrastructure development and structural reforms through initiatives like the Union Budget 2025s tax rationalization measures are expected to support mediumterm growth prospects, while maintaining Indias trajectory toward becoming a $4 trillion economy and achieving developed nation status by 2047.

Source;

1. https://timesofindia.indiatimes.com/business/indiabusiness/indiaq4gdpgrowthbeats estimatesat74fullyear202425estimateat65checktoppointsandhighlights/ articleshow/121515213.cms

2. https://www.bbc.com/news/articles/clyn3dw9gl7o

3. https://www.indiatoday.in/business/story/indiaseconomicgrowthhits4yearlowof65 infy25273316520250530

4. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2098048

5. https://pib.gov.in/PressReleasePage.aspx?PRID=2122148

6. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2131716

7. https://www.cnbctv18.com/economy/indiafiscaldeficitgdpdatafy25fy2619613296. htm

8. https://www.ndtv.com/worldnews/indiasgdpgrowthin20252026estimatedtobe highestamongg20nationsreport8584105

9. https://www.financialexpress.com/policy/economyrbimpcmeetingjune2025live updatesgovernorsanjaymalhotramonetarypolicybigannouncementreporategdp inflationloaninterestrate3870281/

10. https://www.businessstandard.com/economy/news/uncutsindias2025gdpgrowth forecastto63seesstrongmomentum1250516001151.html

11. https://economictimes.com/news/economy/indicators/worldbankretainsindiasfy26 growthat63astradetensionsbitecountriesglobally/articleshow/121756677.cms

12. https://en.wikipedia.org/wiki/2025UnionbudgetofIndia

13. https://economictimes.com/news/economy/indicators/rbimpcmeetinggdpforecast

INDUSTRY STRUCTURE AND DEVELOPMENT

Lead application and global lead industry overview

Lead remains one of the most versatile and recycled nonferrous metals in the world. The primary application of lead accounting for more than 85% of global usage is in the production of leadacid batteries. These batteries serve critical sectors such as automotive (both ICE and hybrid vehicles), uninterruptible power supply (UPS) systems, telecom infrastructure, solar energy storage and industrial backup systems. Beyond batteries, lead finds niche applications in radiation shielding (used in healthcare and nuclear sectors), pigments, ammunition, soldering and cable sheathing. With the growth of electric mobility, telecom infrastructure, renewable energy installations and smart

grid development, the demand for lead in backup energy systems is expanding.

Despite its robust recycling potential and demand, the lead industry faces several systemic challenges. Firstly, there is a growing concern over the environmental and health hazards associated with informal recycling processes, especially in developing economies. Informal recyclers, often operating outside regulatory frameworks, use rudimentary techniques that release lead into the environment and expose workers to unsafe conditions.

Secondly, the lead industry has to contend with the rising volatility of raw material prices, driven by geopolitical instabilityandshiftsinbatterydemand patterns. Furthermore, stricter environmental regulations in developed markets have increased the cost of compliance, making it difficult for smaller recyclers and smelters to sustain operations profitably. Logistics inefficiencies in battery collection and handling also impede the flow of recyclable lead feedstock, especially in regions with fragmented collection systems.

In response to these challenges, multiple stakeholders are adopting corrective measures. Governments across Asia and Europe have begun enforcing Extended Producer Responsibility (EPR) policies that hold manufacturers accountable for postconsumer battery collection and recycling. Formal sector recyclers are investing in cleaner smelting technologies and air pollution control mechanisms to reduce emissions and enhance compliance with environmental norms.

Global organizations are advocating for standardized recycling protocols and occupational safety norms. Traceability systems, enabled by digital platforms, are being introduced to ensure that battery waste is tracked from generation to recycling. Capacitybuilding initiatives aimed at integrating informal recyclers into the formal supply chain are also being rolled out in countries like India and Indonesia.

The global lead industry is expected to witness steady growth, driven by consistent demand from the replacement battery market and a rising focus on circular economy principles. While newage battery chemistries like lithium ion are gaining prominence, the low cost, recyclability and reliability of leadacid batteries continue to make them indispensable in developing markets and infrastructure applications.

As regulatory oversight tightens and technology adoption improves, the share of formal recycling is expected to rise substantially. By 2030, it is projected that over 6570% of global lead consumption will be fulfilled through secondary (recycled) sources. Companies that proactively invest in compliance, cleaner technologies and digital traceability will be better positioned to navigate the evolving landscape and capitalize on emerging opportunities.

GLOBAL LEAD PRODUCTION AND CONSUMPTION OVERVIEW Proven Lead Ore Reserves and Distribution

Global lead reserves are estimated at approximately 96 million tonnes, with resources exceeding 2 billior tonnes worldwide. Australia dominates global lead reserves with 35 million tonnes, representing 36.5% o total world reserves, followed by China with 22 million tonnes (22.9%) and Russia with 8.9 million tonne;

(9 3%) The United States holds 4 6 million tonnes (4 8%) Peru has 5 million tonnes (5 2%) and Mexico

contains 5.6 million tonnes (5.8%) of proven reserves.

The geographical distribution of lead resources is concentrated in specific regions: Siberia in Russia, central and western regions of China, Queensland and New South Wales in Australia, the southeastern Missouri and Mississippi River valley areas in the United States, Zacatecas and San Luis Potosi in Mexico and Cerro de Pasco and Morococha in Peru. These six major reserveholding countries collectively account for approximately 85% of global lead reserves, indicating a relatively concentrated resource base.

Global Demand for Refined Lead Metal

Global demand for refined lead metal experienced a modest increase of 0.2% in 2024, reaching 13.13 million tonnes. The demand is forecast to grow more substantially by 1.9% in 2025 to 13.39 million tonnes. The United States is expected to lead the demand recovery with a 4.3% increase in 2025 after experiencing an 8.3% decline in 2024. European demand, which fell by 4.4% in 2024 due to declining passenger car production, is projected to rise by nearly 2% in 2025.

Chinese demand represents the largest single market globally and is forecast to increase by nearly 1% in 2025 following a 1.3% decline in 2024. Other significant markets showing growth include Brazil, India and Japan, while South Korea is expected to experience demand contraction. The battery sector remains by far the main leadconsuming sector, with lead acid batteries accounting for over 92% of US lead consumption.

Global Supply for Refined Lead Metal

World refined lead metal supply totalled 13.20 million tonnes in 2024, representing a 0.2% decrease from the previous year. For 2025, refined lead supply is projected to increase by 2.4% to 13.51 million tonnes. China dominates global refined lead production with over 5.00 million tonnes annually, maintaining its position as the worlds largest producer. India ranks second with approximately 0.96 million tonnes of refined lead output, followed by the United States at around 0.95 million tonnes. Other significant producers include Mexico (0.43 million tonnes) and the United Kingdom (0.31 million tonnes).

Primary lead production from mining operations reached 4.54 million tonnes in 2024, growing by 1.7% from the previous year, with projections for a further 2.1% increase to 4.64 million tonnes in 2025. Secondary lead production, derived from recycling operations, represents a substantial portion of total refined lead supply, with recycled lead accounting for approximately 60% of global lead supply. The global lead market experienced a supply surplus of 0.06 million tonnes in 2024, which is forecast to nearly double to 0.12 million tonnes in 2025.

Global Lead Prices

Lead prices experienced considerable volatility during the April 2024 to March 2025 period, with significant fluctuations reflecting global supplydemand dynamics and macroeconomic factor. The period commenced with prices at $2,129.46 per tonne in April 2024, reaching a peak of $2,220.81 per tonne in May 2024 before experiencing a general downward trend through the latter half of 2024. The lowest point occurred in January 2025 at $1,921.36 per tonne, followed by a partial recovery to $2,033.21 per tonne by March 2025.

The average price during this twelvemonth period was $2,043.53 per tonne, with a price volatility of $84.88, indicating substantial market uncertainty. The price decline in late 2024 and early 2025 reflected market oversupply conditions and weakening demand in key markets, while the March 2025 recovery was attributed to improved supplydemand dynamics and macroeconomic factors including policy interventions in China. Supply constraints, including maintenance at major delivery enterprises and environmental regulations in key leadproducing regions, contributed to price volatility throughout the period. Market analysts expect lead prices to remain stable around $2,100 per tonne in the near term, supported by steady demand from the battery sector despite ongoing supply surpluses.

Source;

1. http://metalpedia.asianmetal.com/metal/lead/resources&production.shtml

2. https://www.ilzsg.org/

3. https://pubs.usgs.gov/periodicals/mcs2025/mcs2025lead.pdf

4. https://investingnews.com/daily/resourceinvesting/basemetalsinvesting/leadinvesting/leadprodu

5. https://investingnews.com/leadforecast/

6. https://www.bestmag.co.uk/worldleadbalancesettoalmostdoublein2025vs2024ilzsg/

7. https://www.batteriesinternational.com/2025/05/12/ussettoleaduptickinrefinedleadmetaldem,

8. https://www.batteriesinternational.com/2024/05/24/refinedleadmetalsupplysettoexceeddeman

9. https://www.statista.com/statistics/1417073/worldproductionofrefinedleadmetalbycountry/

10. IMARCIndustryReport

11. https://www.statista.com/statistics/264632/leadmineproductionbycountry/

12. https://www.miningtechnology.com/analystcomment/globalleadproduction2024/

13. https://d9wret.s3.uswest2.amazonaws.com/assets/palladium/production/s3fspublic/media/files/rn

14. https://www.pricepedia.it/en/magazine/article/2024/03/18/leadlmepriceforecasts/

15. https://ycharts.com/indicators/leadspotprice

GLOBAL LEAD RECYCLING INDUSTRY

The global lead recycling industry demonstrated steady growth during FY 2425, with the market size reaching approximately USD 18.66 billion by early 2025, reflecting a compound annual growth rate of around 3.5% during this period. The global lead recycling market size stood at approximately 8.1 million metric tons of refined lead produced from secondary (recycled) sources, accounting for over 60% of the total refined lead supply globally. This growth is primarily fueled by the rising demand for leadacid batteries, which dominate sectors such as automotive, energy storage and renewable energy. The increasing adoption of electric vehicles, which rely on leadacid batteries for auxiliary functions, has significantly contributed to the demand for recycled lead. Additionally, stringent environmental regulations and circular economy initiatives worldwide have incentivized recycling, reducing dependence on primary lead mining and mitigating environmental hazards. Technological advancements in recycling processes and the expansion of formal recycling infrastructure have further enhanced market growth by improving recovery rates and lowering costs, making recycled lead a competitive and sustainable alternative.

Some countries that are leading in the global lead recycling market:

Several countries are emerging as global leaders in lead recycling, thanks to their structured collection systems, technological advancements and supportive regulatory environments. China remains the largest contributor, accounting for nearly

3.0 MMT of secondary lead annually. This dominance is due to its vast electric vehicle market, institutionalized battery replacement cycles and an expanding formal recycling sector.

The United States is the secondlargest, producing around 1.1 MMT, supported by a mature automotive sector and established recycling logistics. India is fast catching up, generating approximately 1.0 MMT of secondary lead, thanks to improved compliance enforcement and formalization of its oncefragmented informal sector. Germany and South Korea round out the top five, with advanced emission control technologies and high recycling efficiencies. These countries are

expected to maintain or increase their market shares owing to increased investments in clean recycling infrastructure and enhanced government monitoring.

Opportunities for the growth of the lead recycling industry:

The lead recycling industry stands to benefit greatly from the global shift towards electric mobility and renewable energy. The expanding electric vehicle market and increasing deployment of solar and wind power systems are expected to generate a growing volume of endoflife leadacid batteries, ensuring a steady supply of recyclable lead. Strengthening government regulations worldwide are enforcing higher recycling rates and responsible management of hazardous lead waste, which stabilizes raw material supply and encourages investment in advanced recycling technologies. The integration of digital traceability systems, Internet of Things (IoT)enabled logistics and AI powered waste sorting mechanisms is enhancing the efficiency and accountability of the lead recycling value chain. The rising popularity of EPR frameworks in developing countries is expected to formalize informal recycling networks, bringing large volumes of recyclable lead into the organized sector. Moreover, new market entrants and existing players are exploring crossborder collaboration for battery collection and smelting, opening up regional synergies for efficient operations. Incentives for setting up lowemission recycling units are also expected to attract longterm investments from environmentally conscious corporations.

Challenges faced by the lead recycling industry

Despite the promise, the industry faces several challenges. One of the foremost issues is the prevalence of informal recycling units, especially in South Asia and parts of Africa. These unregulated entities often use crude methods that result in significant environmental pollution and serious health hazards to workers and nearby communities. The lack of uniform global recycling standards also creates disparities in guality, efficiency and worker safety across countries.

Additionally, logistical inefficiencies in battery collection and the improper segregation of recyclable materials hinder the smooth flow of inputs to recycling facilities. The high capital investment reguired for emission control systems, especially for smallscale recyclers, acts as a deterrent for compliance.

Furthermore, fluctuations in global lead prices create uncertainty, affecting profitability for recyclers operating on thin margins. Tackling these issues will require collaborative efforts from governments, industry stakeholders and technology providers.

Source;

1. https://www.precedenceresearch.com/recycledleadmarket

2. https://thebusinessresearchcompany.com/report/recycledleadglobalmarketreport

3. https://custommarketinsights.com/report/recycledleadmarket/

4. https://www.verifiedmarketreports.com/product/leadrecyclingmarket/

5. https://www.fortunebusinessinsights.com/recycledleadmarket111456

6. https://www.openpr.com/news/4055046/recycledleadmarketreport20252032 competitivelandscape

7. https://www.gminsights.com/industryanalysis/leadacidbatteryrecyclingmarket

8. https://www.coherentmarketinsights.com/industryreports/recycledleadmarket

9. https://www.marketreportanalytics.com/reports/leadrecyclingservices73544

10. https://health.economictimes.indiatimes.com/news/industry/leadacidbatteries responsiblerecyclingforourenvironmentandhealth/112993018

11. https://pahleindia.org/wpcontent/uploads/2024/08/UnderstandingtheusedLEADACID BatteryRecyclingEcosystemInIndia.pdf

12. https://www.gmerecycling.com/recyclingofleadacidbatterysettoboomdataand predictions/

INDIA LEAD RECYCLING INDUSTRY

Indias lead recycling industry has continued its robust growth, underpinned by strong demand from the automotive and energy sectors, supportive government policies and a maturing recycling ecosystem. As of

March 2025, Indias total lead reserves are estimated at 2.5 million tons, reflecting a modest increase due to ongoing exploration and improved resource mapping. This equates to about 2.5% of the worlds total lead reserves, which stand at 96 million tons. India houses around 700 registered lead recyclers, although a significant portion of lead recycling still occurs in the informal sector, which the government is actively working to formalize. The total lead recycling capacity in India is estimated to be close to 1.5 MMT per year spread across key industrial regions. North India accounted for 34.5% of the national lead recycling market, followed by West and Central India (29.8%), South India (28.3%) and East India (7.5%) and with rising demand from automotive and industrial applications, this capacity is expected to be fully utilized in the coming years. The total lead consumption in India for FY 202425 stood at approximately 1.45 MMT. Of this, primary lead (from domestic mining and smelting) contributed about 220,000 tons, while secondary lead (recycled) supplied the majority at 1.23 million tons. Thus, recycled lead met nearly 85% of domestic demand.

A kev demand driver for lead in India continues to be the

leadacid battery segment, which serves automotive, telecom, renewable energy storage and power backup industries. The rising electrification of rural areas, along with increased vehicle sales and energy storage requirements, has fueled consistent growth in this segment. To support this demand, the Indian government has introduced various initiatives which includes:

Battery Waste Management Rules: Mandate

collection and recycling of used batteries, with targets for minimum use of recycled content in new products starting FY28.

Extended Producer Responsibility (EPR):

Require eligible producers to ensure collection and environmentally sound recycling of batteries.

Incentives for Recycling Infrastructure: The

government has introduced incentives and eased customs duties on scrap imports, supporting capacity expansion.

Reverse Charge Mechanism (RCM) & TDS: New tax

mechanisms introduced in October 2024 to formalize transactions and reduce informal sector dominance in metal scrap.

These measures are expected to drive continued expansion of formal recycling infrastructure and encourage the adoption of advanced, cleaner recycling technologies.

Source;

1. https://pahleindia.org/wpcontent/uploads/2024/08/UnderstandingtheusedLEADACID BatteryRecyclingEcosystemInIndia.pdf\

2. https://www.techsciresearch.com/report/indialeadacidbatterymarket/3061.html

3. https://www.gminsights.com/industryanalysis/leadacidbatteryrecyclingmarket

4. https://univdatos.com/reports/indiabatteryrecyclingmarket

5. IMARCIndustryReport

GLOBAL LEAD ACID BATTERY INDUSTRY

The global lead acid battery industr maintained robust growth during 2024 25, driven by strong demand from automotive, backup power, industrial an renewable energy sectors. Market siz

estimates for 2024 place the global industry between usd 45 billion. Across the leading sources, a consensus emerges on steady expansion, with the market projected to reach between USD 82.78 billion and USD 133.6 billion by 203334, at a compound annual growth rate (CAGR) ranging from 3% to 5.6% in the coming decade.

Key Market Drivers and Trends

Automotive Dominance: The automotive sector remains the largest consumer, accounting for over half of global lead acid battery sales, primarily for starting, lighting and ignition (SLI) applications in internal combustion vehicles and auxiliary functions in electric vehicles.

Backup Power and Renewable Integration: The

demand for uninterruptible power supply (UPS) systems, data centers and telecom towers especially in

regions with unreliable grids continues to drive growth. Integration with renewable energy, particularly for off grid and backup storage, is also expanding the market.

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Technological Innovation: Advances such as enhanced flooded batteries, absorbent glass mat (AGM) batteries and improved electrode materials (e.g., calciumalloy grids, carbon additives) are increasing battery life, energy density and reliability.

Recycling and Sustainability: High recyclability rates and established recycling infrastructure support environmental sustainability and costeffectiveness, reinforcing the industrys appeal.

3

Regional Highlights

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AsiaPacific holds the largest market share, exceeding 39% in 2024, led by China, India and Southeast Asian nations. This dominance is fueled by rapid industrialization, automotive production and investments in renewable energy and telecom infrastructure. North America and Europe remain key markets, with ongoing upgrades to grid and backup systems.

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The global lead acid battery market is expected to continue its upward trajectory, supported by:

Ongoing vehicle production growth, especially in emerging markets

Expansion of renewable energy and grid storage projects

Continued reliance on costeffective, recyclable battery technologies for backup and industrial uses

Incremental innovation in battery design and materials

0 INDIA LEAD ACID BATTERY INDUSTRY

Indias lead acid battery industry experienced significant growth in 202425, underpinned by surging automotive demand, infrastructure expansion and the proliferation of renewable energy projects. The market size reached USD 4.4 billion in 2024 and is projected to grow at a CAGR of 4.4% to 4.7%, reaching USD 6.7 billion by 2033 and USD 7.47 billion by 2031, according to leading sources. The total domestic consumption of lead for battery manufacturing stood at approximately 1.5 million metric tons, of which over 70% went into leadacid battery applications.

Market Drivers and Trends

Automotive Sector: The primary driver, with batteries essential for SLI functions in the countrys rapidly expanding vehicle fleet, including passenger cars, commercial vehicles and twowheeler.

Renewable Energy and Telecom: The adoption of solar and wind energy systems, along with the expansion of telecom towers, has increased demand for stationary and backup lead acid batteries.

Industrial and Backup Applications: Industries, data centers and commercial establishments continue to rely on lead acid batteries for UPS and emergency power, reinforcing steady baseline demand.

Affordability and Infrastructure: The cost

effectiveness, established manufacturing base and mature recycling ecosystem of lead acid batteries make them the preferred choice across sectors.

Segment Insights

SLI Batteries: Remain the dominant segment, driven by the automotive industrys scale and replacement needs.

Stationary Batteries: Gaining traction in telecom, data centers and renewable energy storage.

Regional Growth: South India is a leading market, supported by automotive and renewable energy manufacturing hubs.

Key Regulation Towards LeadAcid Battery Recycling in India and Challenges

Indias leadacid battery recycling is governed by a robust and evolving regulatory framework designed to ensure environmentally sound management of battery waste and to promote a circular economy. The primary regulation is the Battery Waste Management Rules, 2022, which replaced the earlier Batteries (Management and Handling) Rules, 2001. These rules have since been strengthened by amendments in 2024 and 2025.

Key features of the regulatory framework include:

Extended Producer Responsibility (EPR):Producers,

including importers, are responsible for the collection, recycling, or refurbishment of waste batteries and for using recovered materials in new batteries. EPR obligations are enforced through a centralized online portal managed by the Central Pollution Control Board (CPCB), which tracks compliance and issues EPR certificates.

Mandatory Labeling and Registration: The 2025 amendments require producers to print QR codes or barcodes displaying their EPR registration number on batteries, packaging and product brochures. This enhances traceability and accountability.

Minimum Recycled Content Targets: Amendments mandate a progressive increase in the minimum percentage of recycled materials in new batteries, with targets for automotive and industrial batteries reaching 40% by 203031. Implementation for all battery types will be phased in from 202728 onwards.

Collection and Recycling Targets: For automotive batteries, collection targets are set at 70% by 202425 and 90% by 202526 and beyond. For industrial batteries, targets are 60% by 202425 and 70% by 202526 and onwards. All collected batteries must be refurbished or recycled within seven years.

Environmental Compensation: Noncompliance with

EPR obligations attracts environmental compensation, with the CPCB fixing the highest and lowest prices for EPR certificates based on the level of compliance. Funds collected are used for the collection and recycling of uncollected or nonrecycled batteries and also for general awareness programmes.

Relaxed Marking Requirements: Batteries with cadmium or lead content below specified thresholds are exempt from certain hazardous substance markings, streamlining compliance for producers.

Polluter Pays Principle: Environmental compensation is imposed for failure to meet EPR targets, reinforcing accountability.

Despite comprehensive regulation, Indias lead

acid battery recycling sector faces several persistent

challenges:

Dominance of the Informal Sector: Nearly 90% of used leadacid batteries are recycled by informal or unorganized sectors, which often lack adherence to environmental and safety standards. This results in significant environmental contamination, loss of recoverable lead and severe health risks for workers and communities, especially children.

Enforcement Gaps: While the regulatory framework is strong on paper, enforcement remains inconsistent. Many informal recyclers operate outside the formal system, evading oversight and regulatory compliance.

Economic Disincentives for Formalization: Formal recyclers face higher compliance costs for environmental protection and taxes, making it difficult to compete with informal operators who offer higher prices for used batteries and avoid regulatory expenses.

Environmental and Health Hazards: Informal recycling methods release lead into the soil, water and air, causing widespread contamination and chronic health issues, particularly among marginalized populations living near recycling units.

Collection System Inefficiencies: The lack of an efficient, nationwide collection system for used batteries leads to leakages into the informal sector and improper disposal.

Awareness and Capacity Constraints: Limited

public awareness about the hazards of improper battery disposal and recycling, along with insufficient capacity among regulators, further hampers effective implementation.

Source;

1. https://alephindia.in/batterywastemanagementamendmentrules2025.php

2. IMARCIndustryReport

3. http://www.indiaenvironmentportal.org.in/content/476868/batterywastemanagement amendmentrules2024/

4. https://www.corpseed.com/knowledgecentre/batterywastemanagementamendment rules

5. https://health.economictimes.indiatimes.com/news/industry/leadacidbatteries responsiblerecyclingforourenvironmentandhealth/112993018

6. https://www.ceew.in/sites/default/files/CEEWleadAcidBatteryRecyclinginIndiaApr15. pdf

7. https://pahleindia.org/wpcontent/uploads/2024/08/UnderstandingtheusedLEADACID BatteryRecyclingEcosystemInIndia.pdf

8. https://www.legalitysimplified.com/batterywastemanagementsecondamendment rules2024/

9. https://dialogue.earth/en/pollution/southasiastoxicbatteryrecyclingproblem222/

10. https://indianchemicalregulation.com/indiapublishesbatterywastemanagement amendmentrules2025keyupdatesandcompliancerequirements/

11. https://visionias.in/currentaffairs/monthlymagazine/20240415/environment/battery wastemanagementamendmentrules2024

Application and global aluminium industry overview

Aluminium is a lightweight, corrosion resistant and highly recyclable metal that plays a critical role in the global economy. Its unique properties such as durability, electrical conductivity and noncorrosiveness make it a preferred material across various industries, including transportation, construction, packaging, electrical systems and consumer goods. Due to its sustainability and high recyclability, aluminium is increasingly important in supporting environmental goals and transitioning toward a green economy. Aluminium is extracted from bauxite ore using the Bayer process, which refines the ore into alumina, followed by the HallHeroult electrolytic process to produce pure aluminium metal. As of FY 202425, global aluminium production exceeds 100103 million tonnes annually, with China accounting for over 50% of the total output. Other major producers include the United States, Russia, Canada and India. Aluminium stands out for its recyclability, with approximately 75% of all aluminium ever produced still in use today. Recycling aluminium saves 95% of the energy

required to produce it from raw materials, making it not only costeffective but also environmentally sustainable. This has positioned aluminium as a key metal in the circular economy.

Global primary aluminium production reached approximately 70 million tonnes in 2023, with China accounting for around 60% of this output (4344 million tonnes in 202425). India is the worlds secondlargest producer, with production rising to 4.20 million tonnes in 202425 and is expected to remain stable or grow modestly in 202526. Other significant producers include Russia, Canada and the Gulf states. The global aluminium market is valued at USD 199.83 billion in 2024 and is projected to reach USD 209.62 billion in 2025. By 20332035, the market is expected to grow to USD 307331 billion, with a CAGR of 4.96.1 %. Growth is driven by rising demand in construction, automotive (especially electric vehicles), packaging and green energy sectors. Sustainability trends, including green aluminium initiatives and increased recycling, are also shaping market expansion.

India maintains its position as the secondlargest producer of primary aluminium globally, accounting for about 6% of global production and the countrys production capacity has expanded steadily, with output growing steadily to record levels in the fiscal year 202425. The countrys aluminium industry is supported by abundant bauxite reserves, a robust domestic market and a growing export footprint, with about 40% of production exported, mainly to West Asia and Europe. Indias primary aluminium consumption in 2024 was approximately 4.5 million tonnes, up 1.55% year onyear, making it the thirdlargest consumer worldwide. Per capita consumption in India was 3.1 kg in 2023, which is lower than the global average but expected to rise rapidly as infrastructure and industrialization accelerate. Domestic demand is forecast to double to 910 million tonnes per year by 2030, driven by construction, automotive, electrical and packaging sectors. The sector is experiencing strong demand from construction, automotive and electronics, with the market valued at USD 13.77 billion in 2024 and projected to grow at a CAGR of 6.27% through 2030.

India exports about 40% of its aluminium production, making the export market worth nearly USD 5 billion in 202425. The governments RoDTEP scheme, which provides tax relief on exports, was extended until February 2025, supporting export competitiveness. However, global aluminium prices have faced volatility due to trade tensions and tariffs, particularly from the US. Prices are forecast to average USD 2,000 per tonne in Q3 2025, with a slight rebound to USD 2,300 per tonne by December 2025. A global surplus is expected in 2025, but prices are projected to rise again from 2026 as the market tightens. Indias infrastructure

expansion is a major driver of aluminium demand. Government initiatives such as the Bharatmala Pariyojana, Smart Cities Mission and Housing for All are increasing the use of aluminium in construction, transportation (metro, rail, highways) and power transmission. Over 5,000 km of new metro lines are planned by 2047, requiring large scale aluminium usage for lightweight, durable structures. The push for renewable energy and electric vehicles is also boosting demand for aluminium in solar panel frames, battery enclosures and lightweight vehicle bodies.

Source;

1. https://www.basystems.co.uk/blog/aluminiummanufacturingbasics/

2. https://www.reuters.com/markets/commodities/chinanearspeakaluminiumproduction whatnextandyhome20250424/

3. https://straitsresearch.com/report/aluminummarket

4. IMARCIndustryReport

5. https://www.globenewswire.com/newsrelease/2025/03/03/3035207Z0/en/Global AluminiumMarketPoisedforGrowthAmidRisingDemandinAutomotiveandGreen EnergySectorsFutureMarketInsightsInc.html

6. https://www.alcircle.com/news/hereswhyindianeedsaluminiumasitscornerstoneto achieveherviksitbharatvision113067

7. https://www.alcircle.com/news/indiaremainstheworldssecondlargestprimary aluminiumproducerrecordinga12outputgrowthinq1111594

8. https://www.seaisi.org/details/26231?type=newsrooms

9. https://economictimes.com/industry/indlgoods/svs/metalsmining/aluminiumindustry seeksextensionoftaxbenefitsforexports/articleshow/119207272.cms

10. https://www.alcircle.com/news/goldmansachsturnsbearishonaluminiumpricefor 2025amidtariffimpact113824

11. https://www.alcircle.com/news/riseinindiasaluminiumproductionarippleeffectof widermineralmarketuptick113685

12. https://www.techsciresearch.com/report/indiaaluminummarket/15108.html

13. https://www.thyssenkruppmaterials.co.uk/advantagesofalumrnium.html

14. https://www.hydro.com/en/global/aluminium/aboutaluminium/howitsmade/

15. https://www.datamintelligence.com/researchreport/aluminiummarket

16. https://alupro.org.uk/industry/localauthorities/environmentalbenefits/

17. https://www.futuremarketinsights.com/reports/aluminummarket

18. https://globalriskcommunity.com/marketresearch/indiaaluminiummarketindepth analysisofsizeshareandtrends

? GLOBAL ALUMINIUM RECYCLING INDUSTRY

The global secondary aluminium market demonstrated robust growth during FY 202425, with the market size reaching USD 103.44 billion in 2024, representing a significant increase from the USD 96.87 billion recorded in 2023. The market maintained its upward trajectory throughout the period, driven by increasing governmental efforts to reduce carbon emissions and promote sustainability across industries. The secondary aluminium sector benefited from enhanced efficiency in sorting and processing recyclable materials, particularly through the integration of artificial intelligence technology advanced by initiatives such as the Global Recycling Foundation launched in February 2024.

The markets expansion was particularly pronounced in the automotive and transportation industries, where recycled aluminium gained traction for manufacturing aluminium sheets and alloys due to growing demand for lightweight materials to improve fuel efficiency and reduce emissions. Global recycling efficiency rates remained strong at 76% according to the International Aluminium Institute, with the transportation sector achieving the highest recycling proportion at 86% of total aluminium materials recycled. The AsiaPacific region continued to hold the dominant market share, accounting for approximately 35% of global

INDIAN SECONDARY ALUMINIUM INDUSTRY

Indias secondary aluminium industry experienced substantial growth during FY 202425, with the countrys aluminium market valued at USD 13.77 billion in 2024 and projected to grow at a CAGR of 6.27% through 2030. The domestic secondary aluminium demand demonstrated strong momentum, expected to grow at a compound annual growth rate of 79% from 2023 to 2028, rising from

1.7 million tonnes in 2023 to approximately 2.42.5 million tonnes by 2028. Indias position as the worlds second largest aluminium producer was reinforced with production reaching 3.83 million tonnes during AprilFebruary of FY 202425, representing a modest increase of 0.9% compared to 3.80 million tonnes in the corresponding period of the previous year.

The automotive sector emerged as the primary demand driver for secondary aluminium in India, accounting for approximately 40% of total secondary aluminium demand in 2023. This share is expected to remain stable or see a slight increase over the coming years, as the sector continues to expand and sustainability initiatives drive greater use of recycled aluminium.

Price Trends and Market Pressures

Indias secondary aluminium market experienced considerable price volatility throughout FY 202425, characterized by dramatic fluctuations driven by supply demand imbalances, raw material shortages and global market dynamics. The market witnessed a dramatic price journey starting with elevated levels in early 2024, experiencing significant corrections during the summer and winter months, before concluding with strong upward momentum by March 2025. ADC12 aluminium alloy prices, serving as a key benchmark for the automotive sector, demonstrated considerable variation across both northern and southern Indian markets, with prices reaching approximately INR 242,000 per tonne in Delhi during April 2024 before declining to their lowest levels of INR 208,000

209,000 per tonne in Chennai and Delhi respectively during

December 2024. The period from July to December 2024 saw sustained downward pressure on prices attributed to weak automotive sector demand, sluggish export markets and inventory destocking by original equipment manufacturers. However, the market witnessed a notable recovery from February 2025 onwards, with ADC12 prices rising to INR 217,000 per tonne in Delhi and INR 216,000 per tonne in Chennai by March 2025, marking a sixmonth high amid steadily rising scrap prices.

The secondary aluminium industry in India faced significant supplyside pressures during FY 202425, primarily due to constraints in aluminium scrap availability. Indias aluminium scrap imports totaled 1.75 million tonnes in 2024, a 5% decrease from the previous years 1.85 million tonnes. This shortage was exacerbated by a wave of new and expanded scrap export restrictions globally; as of March 2025, 48 countries had implemented 75 restrictions on scrap exports, including partial or full bans and export duties, which contributed to higher international scrap prices. The operating rate of the secondary aluminium industry showed marked seasonality, with March 2025 experiencing a rebound of 10.5 percentage points month onmonth to reach 43.9%, though still down 4.4% yearon year due to shrinking orders, production losses, and volatile aluminium prices.

The scraptosemifinished product spread a key market health indicator narrowed from INR 33,00034,000 per tonne in February 2025 to INR 32,00033,000 per tonne by March 2025, reflecting pressure from rising scrap prices. During Q3 FY 202425, spreads even fell to INR 25,000

28,000 per tonne, leading many secondary producers to reduce output and avoid booking new import contracts due to unviable margins. Raw material price increases were pronounced: major imported aluminium scrap grades saw consistent upward trends, while domestic scrap prices in northern India rose by up to 11% in the same period.

Regulatory and policy changes further shaped the industry landscape. The Bureau of Indian Standards (BIS) introduced new Quality Control Orders effective December 2024, requiring aluminium alloy ingots and castings to meet specific Indian Standards and carry the BIS mark, except for exports. From October 2024, metal scrap transactions fell

under the GST Reverse Charge Mechanism (RCM), shifting tax payment responsibility to buyers, and a 2% Tax Deducted at Source (TDS) was introduced on large businesstobusiness scrap transactions, increasing compliance and promoting transparency. The tightening of global scrap export policies by numerous countries contributed to higher prices and supply shortages. As a result, the narrowing spread between scrap and finished aluminium products forced many Indian secondary producers to scale back production and delay new imports, as operating at such low margins was not economically viable.

Government Initiatives and Policy Framework

The Indian government implemented several significant initiatives to strengthen the aluminium recycling ecosystem during FY 202425, including the launch of a national portal for recycling nonferrous metals. This initiative aims to enhance sustainability and reduce reliance on imported raw materials while collecting recycling data and identifying sectoral gaps. The government maintained low import duties on aluminium scrap at 2.5% to support domestic recycling industries, though industry bodies advocated for complete removal of import duties to further promote recycling. It is believed that the recycling process emits only 0.3 million tonnes of CO2 per tonne of production compared to 14 tonnes of carbon emissions for primary aluminium production through the smelter route. Indias aluminium demand is expected to reach 10 million tonnes by 2030.

Outlook for FY 202526 and Beyond

The global secondary aluminium market is projected to continue its strong growth trajectory, with the market size expected to reach USD 160.53 billion by 2030, maintaining a CAGR of 6.8% from 20242030. The automotive industry is expected to register the highest usage ofrecycled aluminium during the forecast period, driven by manufacturersneed for lightweight materials to improve fuel efficiency and reduce emissions. The integration of robotics and automation solutions into secondary aluminium facilities is anticipated to create substantial growth opportunities, with automated systems improving productivity, reducing labour costs and enhancing workplace safety.

Indias secondary aluminium demand is expected to maintain its robust growth momentum, with projections indicating continued expansion at a 79% CAGR through 2028. The countrys position as the worlds largest importer of aluminium scrap reflects strong recycling industry growth, though it also indicates reliance on imports due to insufficient domestic scrap supply. Global economic projections suggest significant shifts in economic power, with India expected to become a USD 22 trillion economy by 2050 positioning the country as a major determinant of global aluminium demand.

The aluminium recycling market faces both opportunities and challenges moving forward, with the availability and competitive pricing of alternative materials including steel and plastic affecting demand for secondary aluminium. However, the integration of advanced technologies and government policy support are expected to drive continued market expansion, with particular emphasis on achieving sustainability goals and reducing carbon footprints across industries.

Source;

1. https://www.nextmsc.com/report/secondaryaluminiummarket

2. https://pplaifileupload.s3.amazonaws.com/web/directfiles/ attachments/72021582/314cc39e0deM74fa62e6987b1163056/1112.pdf

3. https://www.alcircle.com/pressrelease/theoperatingrateofsecondaryaluminiumalloy seasonallyreboundedinmarch113792

4. https://www.gminsights.com/industryanalysis/secondarysmeltingandalloyingof aluminiummarket

5. https://www.alcircle.com/pressrelease/indiasupplycrunchdrivessecondaryaluminium priceshigherinapr25trendtocontinueinmay114046

6. https://www.bizongo.com/blog/theindianaluminiummarketindustrydynamicstrends andfuturepotential

7. https://www.alcircle.com/news/indialaunchesaluminiumrecyclingportalamidcircular economypushandglobaltradeshifts114048

8. https://www.fastmarkets.com/insights/autosectorfuellingindiasaluminiumdemand/

9. https://www.zawya.com/en/world/indiansubcontinent/indiasaluminiumproduction seesmodestrisesto3836ltinfy2425jlvhzwl6

10. https://energy.economictimes.indiatimes.com/news/power/recyclingindustrybody demandszerodutyonaluminiumscrapimports/111830719

11. https://internationalaluminium.org/internationalaluminiuminstitutepublishesglobal recyclingdata/

12. https://wastemanagementworld.com/resourceuse/aluminiumrecyclingashining solutionunderpressure/

13. https://www.alcircle.com/news/recycledaluminiummarketeyes160billionby2032but scrapbottlenecksloom114382

14. https://www.bankbazaar.com/commodityprice/aluminiumprice.html

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16. https://www.bigmint.co/insights/detail/indiasupplycrunchdrivessecondaryaluminium priceshigherinapr25trendtocontinueinmay643766

17. https://www.alcircle.com/pressrelease/indiaimportedaluminiumscrappricessee divergenttrendswowsupplyshortagepersists113566

18. https://www.bigmint.co/insights/detail/indiaadc12aluminiumalloyedingotoemgrade pricesdropto10monthlowinsouthindia606600

19. https://www.seaisi.org/details/26231?type=newsrooms

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downmomforoct24settlement30934

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22. https://www.bigmint.co/insights/detail/indiasaluminiumgrowthstoryproduction consumptionstablein2024whatliesahead612516

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25. https://www.scribd.com/document/872532011/IndiasScrapMarket

Application and Global plastic industry overview

The plastic industry plays a vital role across numerous sectors due to its versatility, durability and cost effectiveness. Plastics are widely used in packaging, automotive components, consumer goods, medical equipment, agriculture and construction materials, making them an essential part of modern industrial and consumer ecosystems. The global plastic industry demonstrated robust expansion in 2025, with the market reaching significant valuations across multiple assessments. The global plastic market was valued at approximately USD 678.56 billion in 2025 and is projected to reach USD 980.86 billion by 2034, exhibiting a compound annual growth rate (CAGR) of 4.18%. Alternative market estimates indicate the industry achieved USD 768.9 billion in 2025,

with projections to reach USD 1,138.9 billion by 2035 a a 4% CAGR. These varying assessments reflect differen methodological approaches and market scope definitions though all indicate sustained growth momentum.

The industrys expansion is driven by increasing demanc across multiple sectors, with plastic production reaching 413.8 million metric tons globally in 2023. The versatility of plastic materials continues to account for yearover year production growth, supported by their ability to displace traditional materials such as wood, metal and glass in numerous applications. Market forecasts sugges continued robust performance, with the global plasti market expected to grow at a healthy 3.3% CAGR over th period 20242030.

Regional Market Distribution and Leadership

AsiaPacific maintains its dominant position in the globa plastic industry, accounting for the largest share of both production and consumption. The AsiaPacific plastic marke size reached USD 217.14 billion in 2025 and is expanding at a CAGR of 4.34% during the forecast period. Chin continues to lead global plastic production, accounting fo 33% of worldwide output in 2023, producing an average o

approximately nine million metric tons of plastic products each month. The rest of Asia ranks second globally with a 19% share of total plastic production. Chinas dominance extends beyond production volumes, with the country expected to maintain its leadership position through 2025. Chinese primary form plastic production is projected to reach 131.5174 million tons by the end of 2025, maintaining an average annual growth rate above 5.14%. This expansion represents Chinas continued position as one of the worlds major plastic production bases, holding approximately 33% of global market share.

Indias plastic industry is experiencing significant growth momentum, with manufacturers seeking government support through productionlinked incentive schemes to scale up global presence. The countrys plastic export potential remains substantial, with Chinas export of plastic finished goods currently 25 times higher than Indias, indicating vast opportunities for expansion.

PLASTIC RECYCLING INDUSTRY

The global plastic recycling industry demonstrated robust growth during the April 2024 to March 2025 period, with market valuations showing significant expansion across multiple assessments. The industry reached USD 46.8 billion in 2024 and is projected to achieve USD 101.6 billion by 2034, reflecting a compound annual growth rate of 8.1%. Alternative market estimates indicate the sector was valued at USD 57.37 billion in 2024, with expectations to grow at a CAGR of 6.5% reaching USD 94.95 billion by 2032.

Indias waste plastic recycling market reached 10.9 million tons in 2024, demonstrating substantial growth momentum with projections to reach 25.4 million tons by 2033 at a CAGR of 9.37%. The countrys overall plastic recycling rate improved to approximately 60%, with specific rates for PET reaching an impressive 90%. The Indian market was valued at USD 2.18 billion in 2024, growing at a 10.76% CAGR, positioning it as one of the fastestgrowing recycling markets globally.

Growth Factors

Regulatory Framework and Policy Support: The period between April 2024 and March 2025 witnessed significant strengthening of regulatory frameworks supporting plastic recycling initiatives. The European Union implemented ambitious recycling targets, establishing a 70% overall recycling rate goal by 2025, with specific targets of 55% for plastic materials. Extended Producer Responsibility (EPR) policies gained widespread adoption, creating mandatory accountability structures for manufacturers and importers.

India introduced significant amendments to its Plastic Waste Management Rules in 2024, expanding EPR requirements and establishing stricter compliance mechanisms. The amendments included mandatory labeling and certification requirements for compostable and biodegradable plastics, along with enhanced reporting mechanisms for various

entities involved in plastic waste management. The Centra Pollution Control Board implemented phased EPR targets with collection requirements reaching 100% by 202324 and recycling targets stabilizing by 202728.

Technological Advancements and Innovation: The

plastic recycling industry experienced unprecedented technological innovation during this period, with chemica recycling emerging as a transformative solution. Chemica recycling technologies advanced significantly, enabling the processing of mixed and degraded plastics thai were previously nonrecyclable. These molecularleve breakdown processes expanded the range of materials suitable for recycling while improving output quality substantially.

Market Demand and Consumer Awareness

Environmental consciousness among consumers and businesses reached unprecedented levels during the review period, driving substantial demand for recycled plastic products. The packaging sectors growing emphasi; on sustainable materials created stable market demand with major brands committing to incorporating highe percentages of recycled content in their products. The automotive and construction industries also increased theii adoption of recycled plastics, driven by lightweightinc requirements and sustainability mandates.

Corporate sustainability commitments accelerated throughout this period, with companies actively participating in recycling programs and adopting circula economy business models. Under the Extended Producei Responsibility (EPR) framework, the government introducec systematic incentives for recyclers, such as EPR certificates financial benefits, and priority access to recyclable materials These incentives encouraged formal recyclers to expand capacity and invest in advanced recycling technologies Additionally, consumer education initiatives and awarenes; campaigns significantly improved waste segregation practices, enhancing the quality and quantity of feedstock available for recycling operations.

Challenges and Market Constraints

Infrastructure and Capacity Limitations: Despite

positive growth trends, the plastic recycling industry faced substantial infrastructure challenges during April 2024 to March 2025. Many regions continued to lack adequate collection systems and processing facilities, causing plastic waste accumulation in landfills and environmenta contamination. The fragmented nature of waste collection networks, particularly in developing countries, created supply chain disruptions and increased operational costs for recycling facilities.

India specifically faced challenges in implementing effective plastic waste management practices due to inadequate infrastructure for collection, segregation and recycling operations. The presence of a large informal recycling sectoi made it difficult to formalize and regulate the plastic waste

management system effectively. Limited availability of quality feedstock materials remained a persistent constraint, with varying degradation behaviors across different plastic types complicating processing operations.

Economic and Market Pressures: The European plastic recycling sector experienced an existential crisis during 2024, with plant closure rates doubling compared to 2023. Rising operational costs, including elevated energy expenses and increasing waste material costs, created significant financial strain for recycling operations. Competition from cheaper imported materials, often accompanied by fraudulent sustainability claims, undermined domestic recycling production.

Global market volatility affected recycling economics, with virgin plastic prices reaching historically low levels in real terms, creating pricing pressures for recycled materials. The cost structure for producing highquality recycled plastics remained higher than virgin plastic production, challenging the economic viability of recycling operations during periods of low commodity prices. Limited market demand for recycled plastics in certain applications continued to constrain industry growth and profitability.

Quality Control and Contamination Issues:

Contamination remained a major challenge affecting recycled material specifications and limiting applications in highvalue products. Plastic waste often contained food residues, liquids and other nonplastic materials, making recycling processes difficult and costly. Lack of proper waste segregation at source continued to create inefficiencies in sorting processes, particularly in developing countries where manual segregation remained prevalent.

The presence of hazardous substances in plastic products created additional complications for recycling operations. Materialbased challenges related to flame retardants, UV stabilizers and other chemical additives limited the recyclability of certain plastic products. Product design challenges, including laminates of different materials and complex multilayer packaging, continued to hinder effective sorting and recycling processes.

Outlook

Market Projections and Growth Trajectory: The global plastic recycling market is positioned for continued robust expansion beyond April 2025, with projections indicating growth to USD 67.58 billion by 2029 at a CAGR of 8.6%. The plastic recycling solutions market specifically is expected to reach USD 61.3 billion by 2030, growing at a CAGR of 7.8% from 2024. Indias plastic recycling industry is projected to experience significant growth, with market volume estimates suggesting an increase to 23.7 million tons by 2032.

The industry outlook remains positive despite current challenges, supported by strengthening regulatory frameworks and increasing corporate sustainability

commitments. Singleuse plastic bans, consumer education initiatives and Extended Producer Responsibility policies are expected to drive continued market expansion. The development of wastetoenergy solutions and improved global supply chains will create additional growth

opportunities.

Regulatory and Policy Developments: The regulatory landscape is expected to continue strengthening, with stricter regulations concerning plastics and plastic waste driving market growth globally. The European Unions Packaging and Packaging Waste Directive will mandate 30% recycled content in contactsensitive packaging, creating substantial demand for highquality recycled materials. Extended Producer Responsibility frameworks will expand to additional regions and product categories, establishing comprehensive accountability systems.

Indias EPR implementation will enter advanced phases, with recycling targets reaching full compliance requirements by 202728. The use of recycled content mandates will begin implementation from fiscal year 202526, creating direct market demand for recycled materials. Reuse targets for specific container categories will commence in 202526, promoting circular economy principles across the packaging industry.

Source;

1. https://www.precedenceresearch.com/plasticsmarket

2. https://www.statista.com/statistics/282732/globalproductionofplasticssince1950/

3. https://www.globenewswire.com/newsrelease/2025/03/28/3051420/28124/en/Global PlasticsMarketReport2025Polyethyleneand

4. https://www.futuremarketinsights.com/reports/plasticmarket

5. https://www.sunsirs.com/commoditynews/petail22187.html

6. https://www.businessstandard.com/budget/news/budget2025plasticsmanufacturers seekplitoscaleupglobalpresence1250106010261.html

7. https://www.insightaceanalytic.com/report/plasticrecyclingmarket/1621

8. https://www.industryarc.com/Research/PlasticRecyclingMarketResearch510965

9. https://www.imarcgroup.com/indiawasteplasticrecyclingmarket

10. https://www.maximizemarketresearch.com/marketreport/globalplasticrecycling market/55199/

11. https://www.waste360.com/wasterecycling/alookat2024recyclingtrends

12. https://www.globenewswire.com/newsrelease/2025/02/06/3022158Z0/en/Plastic RecyclingServicesMarketSizeLeadsUSD6794Bn2034.html

13. https://www.downtoearth.org.in/climatechange/plasticrecyclingindustryfaces existentialcrisisineuropeasgreenjobsthreatenedbydipinproduction

14. https://www.chemanalyst.com/NewsAndDeals/NewsDetails/plasticrecyclingindustry facescrisisamidrisingplantclosures35291

15. https://www.simonkucher.com/en/insights/navigatingchallengesandopportunities plasticrecyclingmarket

16. https://recykal.com/blog/5majorchallengesinplasticwasterecyclingrecykal/

17. https://cerclex.com/blog/challengesofimplementingplasticwastemanagementin india/

18. https://polynextconf.com/top10challengesinplasticrecyclingsolutions/

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20. https://www.pall.com/en/decarbonization/blog/Plasticrecycling2025.html

21. https://blog.tbrc.info/2025/04/plasticrecyclingmarket3/

22. https://indianchemicalregulation.com/indiaintroducesamendmenttoplasticwaste managementrules/

23. https://www.breakfreefromplastic.org/wpcontent/uploads/2024/11/http cdn.cseindia.

orgattachments0.312822001730173267unpackingeprforplasticpackaginginindia.

pdf

24. https://www.bpf.co.uk/article/15innovationsinplastics20243670.aspx

25. https://polynextconf.com/toptentrendsinplasticrecyclingmarket/

26. https://jbecotex.com/chartingindiasriseasagloballeaderinpetrecycling/

27. https://jbrpet.in/recyclingtrendstowatchin2025/

BUSINESS AND FINANCIAL OVERVIEW

Gravita India Limited stands as a globally recognized player in the recycling and manufacturing of nonferrous metals, particularly lead, aluminium and plastic.

With a legacy spanning over three decades since its inception in 1992, the Company has strategically positioned itself as a circular economy enabler across more than 70 countries, with exports accounting for over half of its consolidated revenues. Gravitas growing international footprint reflects its capabilities in delivering quality, sustainabilitydriven solutions to clients across Europe, North America, Asia and Africa.

The Companys integrated business model includes endto end capabilities in recycling, refining and manufacturing of lead and aluminium products, along with plastic recycling. In addition, Gravita provides turnkey project solutions for lead battery recycling plants globally, backed by its deep technical expertise. Its operations are supported by a geographically diverse network of manufacturing and recycling units, located in key domestic hubs such as Jaipur, Mundra, Chittoor and Kathua and extended internationally across Sri Lanka, Ghana, Senegal, Mozambique, Tanzania, Togo, Romania.

Gravita continues to align its business priorities with global sustainability goals, emphasizing cleaner technologies, waste minimization and resource efficiency. Its longterm strategic ambition is to emerge among the top five global recycling companies by 2026, focusing on responsible expansion, operational excellence and value creation for all stakeholders.

The Companys consolidated financial results have been prepared in accordance with Indian Accounting Standards (Ind AS), as notified by the Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended). These financial statements present a true and fair view of Gravitas performance, reflecting the companys commitment to transparency, compliance and sustainable financial management.

Brief financial performance for F.Y. 202425: Consolidated Financial Summary:

Particulars	Year ended March 31, 2025	Year ended March 31,2024
Revenue from Operations	3,869	3,161
EBDITA	404	331
Interest and Financial Charges	43	49
Tax expenses	51	32
Net Profit#	313	242
Standalone Financial Summary:		(Amount in Crores)
Particulars	Year ended March 31,2025	Year ended March 31, 2024
Revenue from Operations	3,223	2,679
EBDITA	244	234
Interest and Financial Charges	22	31
Tax expenses	39	29
Net Profit#	194	180

After adjustment of Income/Loss from currency and metal hedging # Including minority interest

Key Financial Ratios on Standalone basis

Ratios	202425	202324	% Change	Reason (if more than 25% change)
Debtors Turnover	15.28	15.03	1.66%
Inventory Turnover	6.96	6.05	15.12%
Interest Coverage Ratio	15.90	1.56	918.83%	The increase in the ratio is majorly due to decrease in principal repayments as major long term borrowings has been repaid by the Company during the previous year.
Current Ratio	6.53	1.44	353.55%	The increase in ratio is on account of repayment of current borrowing and increase in current assets due to additional capital infused by way of QIP.
Debt Equity Ratio	(0.03)	0.58	(104.68%)	The decrease in ratio is on account of decrease in noncurrent borrowing and increase in total equity due to increasing operational profits derived from improvement in companys financial health and increase in Securities Premium, reserve and Equity Share Capital due to QIP.
Operating Profit Margin (%)	6.92	7.45	(7.11%)
Net Profit Margin (%)	5.99	6.64	(9.89%)
Return on Net Worth (%)	12.17	39.35	(69.07%)	The decrease in ratio is on account of increase in equity by way of QIP.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Gravita India Limited has instituted a robust internal control framework designed to ensure operational efficiency, safeguard its assets, maintain compliance with applicable laws and regulations and ensure the reliability of financial reporting. The internal control systems are continually reviewed, strengthened and upgraded in line with the evolving scale and complexity of operations.

The Internal Audit function operates independently and regularly assesses the adequacy and effectiveness of the internal controls across all functions and geographies. These audit reports are reviewed periodically by the Audit Committee, which monitors the implementation of audit recommendations and corrective actions. The Committee also holds regular discussions with both internal and statutory auditors to evaluate and reinforce the integrity of the internal control environment.

Pursuant to the evaluation under Section 177 of the Companies Act, 2013 and Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audit Committee confirmed that the Companys Internal Financial

Controls were adequate and functioning effectively as of 31st March, 2024.

Further, the Companys Statutory Auditors, Walker Chandiok & Co. LLP, have audited the financial statements and provided their opinion on the adequacy and operating effectiveness of internal financial controls over financial reporting as per the requirements of Section 143 of the Companies Act, 2013.

RISK AND CONCERN

Gravita India Limited operates in a dynamic and globally interlinked recycling industry, which is inherently exposed to several external and internal risks. Key concerns include commodity price volatility, which can significantly impact input costs and profitability, especially in the lead, aluminium and plastic segments. The business is also sensitive to global trade fluctuations, supply chain disruptions and regulatory changes across international jurisdictions, particularly in countries that are major scrap suppliers or product markets. Environmental and compliance regulations are becoming increasingly stringent worldwide, posing operational and reputational risks, especially in handling hazardous materials like lead.

Additionally, the recycling industry faces challenges related to raw material availability, especially given rising global competition for quality scrap and increasing local policy restrictions. Rapidly evolving ESG expectations and sustainability mandates from customers, regulators and investors further necessitate continuous upgrades in operations and disclosures. The Company also remains vigilant against operational risks, including safety, logistics bottlenecks and geopolitical events that could impact exports. While Gravita continues to build resilience through diversification and strategic investments, these sectoral headwinds require constant monitoring and adaptive management to safeguard stakeholder value.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

At Gravita India Limited, we believe that our people are the cornerstone of our success. Our employees are not just contributors to operations, they are the driving force behind our innovation resilience and growth. The Company has consistently focused on nurturing a culture that empowers individuals through trust, transparency and purposeled engagement We offer a dynamic work environment supported by competitive compensation, structured career growth and a strong focus on learning and development. Our reward and recognition programs are designed to celebrate performance, foster a sense of belonging and encourage longterm commitment. Through various leadership and skill development initiatives, we strive to equip our workforce to meet the evolving needs of the business and the industry at large.

Beyond routine responsibilities, we actively encourage employees to explore their potential by undertaking

voluntary, crossfunctional initiatives that promote problemsolving, creativity and collaboration. This has helped in building a culture of ownership and innovation across the organization. The Company remains committed to building a diverse, inclusive and futureready workforce that can navigate the complexities of a global business. As on 31st March 2025, the Company employed approximately 3116 employees at the group level and 2000 employees on a standalone basis, representing a broad and capable team that underpins our sustainable and scalable operations.

INFORMATION & TECHNOLOGY

Gravita India Limited has embraced advanced technology as a cornerstone of its operational excellence in the recycling of lead, aluminium and plastics. The Company continually invests in automation to streamline material handling processes, reduce operational downtime and improve the quality of recycled products. Stateoftheart sensorbased sorting systems, featuring AIdriven, deeplearning technology are employed to distinguish and segregate alloys and plastics with high precision, ensuring better purity and yields. This approach aligns Gravita with industry standards pioneered by global leaders utilizing XRT and deeplearning algorithms to enhance sorting accuracy and raw material optimization.

In line with its commitment to sustainability and circular economy principles, Gravita harnesses digital solutions to enhance traceability, compliance and resource efficiency across its value chain. Proprietary IT systems integrate plantwide data for monitoring environmental metrics, workflow automation and workforce safety, while digital portals streamline thirdparty coordination and EPR compliance. These digital platforms help drive realtime decisionmaking, enhance transparency in regulatory reporting and elevate performance governance. Furthermore, Gravita is exploring the potential of blockchain and IoTenabled sensor networks for future initiatives in product traceability and Smart Recycling, a forwardthinking approach recognized among global recyclers leveraging digital transformation in the materials sector.

? CAUTIONARY STATEMENT

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be forward looking statements within the meaning of applicable securities laws and regulations. Forwardlooking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual result could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forwardlooking statements on the basis of any subsequent developments.