Gravita India to slash lead shares by 70% in a bid to expand its aluminium recycling operations

Gravita India is set to reduce the share of lead in its portfolio and expand into aluminium recycling, rubber, and lithium battery. The Jaipur-based recycling firm will decrease the share of lead from 88 per cent to 70 per cent, as Navin Prakash Sharma, the Executive Director of the firm anticipates significant growth in their aluminium operations, which currently have a capacity of 40,000 tonnes.

"This will increase demand of around 200,000 tonne of aluminium from the secondary segment. It will also give value addition for the secondary material as compared to primary materials. So altogether, I foresee that this segment will grow with the help of EPR on non-ferrous metal, by hedging through MCX, by launching this derivative of aluminium alloy," added Sharma.

This expansion will be fuelled by the launch of aluminium alloy derivatives on the Multi Commodity Exchange (MCX) and the influence of upcoming Extended Producer Responsibility (EPR) regulations in the non-ferrous metals sector. The government has announced a draft rule that will, from April 2025, bring aluminium, copper, and zinc under EPR mandates, requiring a mandatory 5 per cent non-recycled material content in finished products.

Gravita India plans to boost its aluminium recycling capacity to 70,000-80,000 tonnes within 2-3 years. The company's stock has been one of the standout performers in 2024, with brokerage firm Motilal Oswal initiating coverage with a buy rating and a target price of INR 2,350. With a market capitalization of approximately INR 15,084.78 crore, Gravita India's shares have surged nearly 192 per cent over the past year.