Gravita India shares zoomed 5 per cent to Rs 47.50 on the BSE on Friday after the company announced its Ghana subsidiary had enhanced the production capacity.
At 10:11 AM, the stock was trading 2.43 per cent higher at Rs 46.30 as compared to a 0.2 per cent dip in the benchmark S&P BSE Sensex. A total of 51,000 shares had changed hands on the BSE and National Stock Exchange (NSE) by the time this report was filed.
"Gravita India Limited hereby informs that Recyclers Ghana Limited, a step down subsidiary of the company situated in Ghana, West Africa has enhanced the production capacity of its existing Lead Recycling Plant from 6,000 MTPA to 12,000 MTPA (metric tonns per annum)," the company said in its filing to the BSE. READ THE FILING HERE
"The production from the Ghana plant will provide strategic advantage to the company to cater to the European and US Market. This plant will help the company to save the logistics cost which will reduce the working capital cycle of the company resulting in better margins," it said.
The group has made investment of approx. Rs 21 crores for establishment of this recycling plant from internal accruals of the company, according to the filing.