Gravita India added 3.62% to Rs 354.75 after the company announced that its step down subsidiary situated in Senegal, West Africa, has started commercial production of aluminium from a new recycling plant.
The said recycling plant has an annual capacity of around 4,000 MTPA. The Company is expecting an additional revenue of approximately Rs 60 crore per annum with a gross margins of approximately 20% from the new capacity.
The Group has made investment of approximately Rs 3.50 crore for procuring and commissioning of this new recycling plant, which is invested from internal accruals of the company.
The company will be procuring domestic aluminium scrap for the purpose of production from this plant and it will cater to the needs of Aluminium die casting components manufacturing industries of Auto & FMCG sector located in China, Japan and Vietnam.
"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 contribution of Aluminium business, the recycling company said in a statement.
Gravita India is a leader in integrated operations of non-ferrous metals and plastics having recycling, manufacturing and turnkey business in Asia, Africa and South America.
The company's consolidated net profit surged 95.22% to Rs 42.52 crore on a 29.87% increase in sales to Rs 579.70 crore in Q1 FY23 over Q1 FY22.
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