Gravita India invests ₹49 Cr, boosts Mundra lead recycling capacity by 80,300 MTPA

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AuthorAbhay Singh|Published at:
Gravita India invests ₹49 Cr, boosts Mundra lead recycling capacity by 80,300 MTPA
Overview

Gravita India Limited has significantly ramped up its lead recycling operations by investing ₹49 Crore in its Mundra, Gujarat facility. The expansion adds 80,300 MTPA to the unit's capacity, bringing the total at Mundra to 1,45,100 MTPA. This move bolsters the company's global installed recycling capacity to 4,25,959 MTPA, aligning with growing demand for sustainable lead products and enhancing its competitive edge.

Gravita India Expands Mundra Lead Recycling Capacity by 80,300 MTPA with ₹49 Cr Investment

The Mundra facility's lead recycling capacity has increased by 80,300 MTPA to reach a total of 1,45,100 MTPA. The company invested approximately ₹49.00 Crores, entirely funded by internal accruals.
Reader Takeaway: Enhanced capacity meets demand; commodity price volatility remains a watch.

What just happened (today’s filing)

Gravita India Limited announced a significant expansion at its lead recycling unit in Mundra, Gujarat. The company has invested approximately ₹49.00 Crores, sourced from internal accruals, to boost the facility's lead recycling capacity by 80,300 MTPA.

This expansion brings the total lead recycling capacity at the Mundra unit to 1,45,100 MTPA. Following this enhancement, Gravita India's total installed recycling capacity worldwide now stands at 4,25,959 MTPA.

The move is strategically aligned with the company's objective to strengthen its recycling capabilities and cater to the escalating global and domestic demand for sustainable lead products.

Why this matters

This capacity expansion is poised to enhance Gravita India's ability to meet the growing market demand for lead products, reinforcing its position as a key player in the recycling industry. The improved operational efficiencies and optimized logistics, facilitated by the Mundra plant's proximity to the port, are expected to improve service to global export markets.

The backstory (grounded)

Gravita India has a track record of strategic capacity enhancements. In April 2023, the company expanded its Mundra facility's lead recycling capacity by 40,500 MTPA to 60,000 MTPA and initiated Red Lead and Plastic Granules production, involving an investment of ₹31 Cr. Concurrently, it has been expanding capacity at its Jaipur facility, targeting an increase of up to 45,000 tonnes per year. The company has ambitious plans to nearly double its total capacity to 7 Lc MTPA by FY28, backed by an investment of approximately ₹1,225 Cr by FY28, funded through internal accruals, existing liquidity, and limited debt.

What changes now

  • Increased ability to serve growing domestic and international demand for lead products.
  • Strengthened competitive position in the lead recycling market.
  • Potential for improved operational efficiencies and logistics due to the Mundra port's strategic location.
  • Enhanced contribution to the company's global recycling capacity.

Risks to watch

The company faces commodity price volatility, particularly in aluminium and plastic recycling where hedging is not readily available. Regulatory risks associated with hazardous materials and environmental norms, as well as stiff competition from organised and unorganised players, also pose challenges. Project delays and potential misallocation of capital towards new ventures are also monitored risks.

Peer comparison

Gravita India operates in a competitive landscape. Key peers include Pondy Oxides & Chemicals Ltd (POCL), which is a leading secondary lead smelter and recycler in India. Exide Industries Ltd. is another major player involved in lead-acid battery recycling. Nile Ltd. also manufactures lead products and has ventured into lithium-ion battery recycling.

Context metrics (time-bound)

  • Gravita's total installed recycling capacity globally post-expansion: 4,25,959 MTPA (As of Feb 2026).
  • Mundra lead recycling capacity post-expansion: 1,45,100 MTPA (As of Feb 2026).

What to track next

  • The company's progress in achieving full operational utilization of the expanded Mundra capacity.
  • Contribution of the expanded capacity to the company's overall revenue and profitability.
  • Management's execution of future expansion plans and capex deployment.
  • Any further updates on raw material sourcing and pricing trends.
  • Performance of other business verticals like lithium-ion battery recycling.
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