Gravita India starts Aluminium recycling plant in Mozambique
Leading recycling company Gravita India announced that a step-down subsidiary of the company situated in Mozambique, East Africa, has started commercial production of Aluminium from its new plant. It will have an annual capacity of around 4,000 MTPA (Million Tonnes Per Annum). This is in addition to the company’s existing lead recycling facility of 4,500 MTPA. Gravita India is also in the process to set up a new plastic recycling unit in Mozambique.
The group has invested about Rs 2 crore for procuring and commissioning of this new recycling plant which came from internal accruals of the company. The plant is set up on leased premises given the judicious use of capital along with the lean Capex policy of the company. It is expecting additional revenues of approximately Rs 50 crore per annum coupled with gross margins of approximately 18 per cent from the aluminium recycling plant in Mozambique.
In the last three weeks, aluminium has climbed by more than 15 per cent. Aluminium prices recently crossed USD 3,000 per ton in London for the first time in 13 years amid expectations that supply disruptions will last longer while demand keeps surging. The company aims to procure domestic aluminium scrap for production from this plant. It will furnish the need for aluminium die casting components manufacturing industries such as the Automotive and FMCG sector situated in East and South Asian markets.
The Gravita Group is among one of the well-known recycling companies across the globe. This capacity expansion will aid the company to change its sales mix by increasing the ratio of the aluminium business.
Gravita India is engaged in trading lead alloys and lead value-added products.
Gravita India’s scrip opened at Rs 205 per share and touched a high of Rs 211.75 per share during early market hours on September 14, 2021.