Gravita India's subsidiary commences aluminium recycling plant in Togo-West Africa; stock rises ~3%

6 Dec 2022 , 11:15 AM

Gravita India Limited, a leading recycling company with a global manufacturing presence, announced that Gravita Togo SAU, a step-down subsidiary of the company located in Togo, West Africa, has kicked off commercial production of Aluminium CastAlloys from a new recycling plant with an annual capacity of around 4,000 MTPA in Phase I.

The new capacity is expected to generate additional revenue of approximately Rs60 crore per year, with gross margins of approximately 26%.

Furthermore, before establishing the plant, the company had been sourcing scrap from Togo for the previous three years and had established a strong scrap collection network.

Similar aluminium recycling facilities are already in place in Tanzania, Senegal, Mozambique, and India. This is consistent with the company’s vision of emulating the recycling business across multiple geographies.

The Group has invested approximately Rs11 crore in the procurement and commissioning of the new recycling plant, which is funded by internal company accruals.

From this plant, the company will procure domestic aluminium scrap for production, and it will serve the needs of the aluminium die-casting component manufacturing industries of the auto and FMCG sectors in China, Japan, Thailand, Korea, and Vietnam.

Gravita Group is one of the most reputable recycling companies in the world, and this new recycling facility will assist the company in expanding its Aluminium segment capacity in Africa.

Gravita India stock was trading at Rs391 up by 3.15% from its previous closing of Rs379.05 on the BSE. The scrip opened at Rs376.65 and has touched intraday high and low of Rs399.95 and Rs374.50 respectively.

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