This Aluminium Recycling Plant is expected to bring in an extra Rs50 crore in income each year, with gross margins of 18 per cent.
Gravita has announced that its step-down subsidiary in Mozambique, East Africa, has begun commercial production of aluminium from its new recycling plant, which has an annual capacity of around 4,000 MTPA, in addition to its existing Lead recycling facility, which has a capacity of 4,500 MTPA and is also in the process of establishing 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 invested 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 leased premises keeping given judicious use of capital & lean CAPEX policy of Gravita, the company said in the filing.
The Company will be procuring domestic aluminium scrap for production from this plant and it will cater for the needs of Aluminium die casting components manufacturing industries of the Auto & FMCG sector located in South and East Asian markets, it added.
Gravita Group is among well-known recycling companies across the globe and the capacity expansion of this plant will help the company to change its sales mix by increasing the ratio of the Aluminium business.