Gravita India jumped 3.01% to Rs 390.45 after the company said its step down subsidiary, Gravita Togo SAU, has started aluminium recycling plant in West Africa.
Gravita Togo SAU has started commercial production of aluminium cast-alloys from a new recycling plant having an annual capacity of around 4,000 MTPA in phase I.The company is expecting an additional revenue of approximately Rs 60 crore per annum with a gross margins of approx 26% from the new capacity.
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Further, the company has been sourcing scrap from Togo for the last 3 years and has set a strong scrap collection network before establishing the plant.
The company is already having similar aluminium recycling facility in Tanzania, Senegal, Mozambique and India. This is in alignment with the company's vision of replicating the recycling business in different geographies.
The Group has invested approximately Rs 11 crore for procuring and commissioning of the new recycling plant which is funded from internal accruals of the company.
The company will be procuring domestic aluminium scrap for production from this plant and it will cater the needs of aluminium die casting components manufacturing industries of auto & FMCG sector located in China, Japan, Thailand, Korea and Vietnam.
Gravita India's principal activities are lead processing, aluminium processing, trade (lead products and aluminium scrap) and dealing in turnkey lead recycling projects.
The company's consolidated net profit rose 20.6% to Rs 44.57 crore on 24.9% rise in net sales to Rs 682.69 crore in Q2 FY23 over Q2 FY22.
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