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Race Eco Chain Limited announced that its subsidiary, Ganesha Recycling Chain Pvt Ltd, has acquired a 51% stake in Shubhlaxmi Ecoplast LLP for ₹2.30 crore. The acquired entity, which recycles plastic and polymer waste and reported a turnover of ₹0.80 crore in FY25, will boost Race Eco Chain's recycling portfolio, with the integration of the new unit now a key focus.
This transaction, completed for ₹2.30 crore in cash, makes Shubhlaxmi Ecoplast LLP a subsidiary of Ganesha Recycling Chain, and consequently, a step-down subsidiary of Race Eco Chain. Shubhlaxmi Ecoplast LLP operates within the plastic and polymer waste recycling sector.
The acquisition marks a strategic expansion for Race Eco Chain into the growing plastic and polymer waste recycling market. This move aligns with the company's corporate objectives to broaden operations and strengthen its presence in eco-friendly solutions.
Race Eco Chain Limited is primarily involved in trading and manufacturing eco-friendly products, alongside waste management and recycling services. The company has previously expanded through subsidiary acquisitions, including a 100% stake purchase in R.E.C. Tech Pvt Ltd in May 2023 to enhance its recycled products segment.
The acquisition provides Race Eco Chain with a stronger foothold in the plastic recycling industry through its new step-down subsidiary. This diversifies the company's portfolio of eco-friendly and waste management services and increases its operational presence in the polymer recycling value chain.
The company's official filing did not explicitly detail specific risks related to this acquisition. Public record searches did not reveal significant past regulatory or governance issues for Race Eco Chain Ltd.
Directly comparable listed peers focusing solely on plastic waste recycling at this scale are scarce in India. Uflex Ltd, a packaging company, is considered a peer due to its polymer-based products and recycling efforts. Hindustan Composites Ltd operates in related industrial material sectors.
Investors will be watching the performance and integration of Shubhlaxmi Ecoplast LLP within the Race Eco Chain group. Key metrics include the company's ability to leverage synergies and expand the acquired entity's capacity or reach. Future announcements on further strategic acquisitions or organic growth in the recycling sector, as well as financial reports from the step-down subsidiary, will also be important.