Gravita India to acquire first recycling facility

11 Sep 2024 , 03:33 PM

On Wednesday, September 11, shares of lead products maker Gravita India Ltd. fell by more than 3%.

The business reported that Gravita Netherlands BV, its step-down subsidiary, has signed a Memorandum of Understanding (MOU) to buy a Waste Tyre Recycling plant in Romania from an existing entity with a capacity of roughly 17,000 MTPA.

This is Gravita’s first recycling facility in Europe.

This acquisition will be completed by incorporating a separate SPV in Romania, with Gravita Netherlands BV having 80% of the stock and management control, and the remaining equity held by other Romanian partners, according to a filing.

The entire investment in this transaction is roughly ₹40 Crore, with the company contributing around ₹32 Crore after thorough financial, environmental, and legal due diligence.

GNBV also intends to extend its recycling business activities across Europe, capitalising on new market opportunities and forming key alliances to accelerate growth. This acquisition will boost our presence, expand our customer base, and strengthen our competitive position in the European market.

The company already has similar rubber recycling operations in Senegal, Togo, Ghana, and Tanzania. This aligns with the company’s objective of diversification and expansion, which includes replicating our recycling operation in several geographies.

At around 3.25 PM, Gravita India was trading 2.70% lower at ₹2,228.65 per piece, against the previous close of ₹2,290.60 on NSE. The counter touched an intraday high and low of ₹2,349.40, and ₹2,207.95, respectively.

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