Gravita informs that a step-down subsidiary of the company situated in Mozambique, East Africa has started commercial production of Aluminium from its new recycling plant having an annual capacity of around 4,000 MTPA in addition to its existing Lead recycling facility of 4,500 MTPA and is also in process of setting up of a new plastic recycling unit in Mozambique.
The Company is expecting an additional revenue of approx. Rs50cr per annum coupled with gross margins of ~18% from this Aluminium Recycling Plant. The stock is currently trading at Rs206.95 up by Rs3.35 or 1.65% from its previous closing of Rs203.60 on the BSE. The scrip opened at Rs205 and has touched a high and low of Rs211.60 and Rs204.40 respectively.
The Group has made investment of approx. 2 Crores for procuring and commissioning of this New Recycling Plant which is invested from internal accruals of the company. The said plant has been set up on a leased premises keeping in view of judicious use of capital & lean capex policy of Gravita, the company said in the filing.
The Company will be procuring domestic aluminium scrap for the purpose of production from this plant and it will cater the needs of Aluminium die casting components manufacturing industries of Auto & FMCG sector located in South and East Asian markets, it added.
Gravita Group is among well-known recycling companies across the globe and capacity expansion of this plant will help company to change its sales mix by increasing the ratio of Aluminium business.