Gravita India rose 3.38% to Rs 143.95 after the company said that Recyclers Ghana, its step-down subsidiary based in Ghana, West Africa, has enhanced the production capacity of its exiting lead recycling plant to 16,200 MTPA from 12,000 MTPA.
The group has made an investment of Rs 10 crore for the above expansion and till date approximately Rs 31 crore have been invested for establishment of this recycling plant having capacity of 16,200 MTPA which has been invested through internal accruals of the company.
Recyclers Ghana has also started manufacturing of customized products wherein company enjoys the better margins. The Group is expecting a revenue contribution of approximately Rs 200 crore along with gross margin of around 15% from this step-down subsidiary in FY 2021-22.
Further, due to increase in domestic procurement the company has accelerated the process of establishment of new unit at Mundra, Gujarat which expected to complete by August 2021.
Establishment of Mundra plant will help the company in saving the inward and outward logistics cost as Mundra facility is much closer to the port which in turn will reduce the working capital requirement of the company.
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Furthermore, the above expansions will increase the share of business from overseas market which will result in higher margins.
Gravita India is a leader in integrated operations of non-ferrous metals and plastics having recycling, manufacturing and turnkey business in 8 countries of Asia, Africa and South America Continent. The company enjoys patronage of its products in more than 59 countries. It is one of the largest lead producer in India.
Gravita India's consolidated net profit rose 69.31% to Rs 21.35 crore on a 15.57% increase in net sales to Rs 438.30 crore in Q4 FY21 over Q4 FY20.
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