Recycling company Gravita India has announced commencement of operations at its new battery recycling plant at Mundra Port in Gujarat.
In a stock exchange filing, Gravita said that the plant’s processing capacity would be 19,500 tonnes per year in Phase-I. The plant is equipped with latest technology and automated processes, the filing added.
Capex
Gravita India incurred capital expenditure of Rs.32 crore for setting up Phase-I of the facility. Of this, borrowings accounted for Rs.26 crore while the remainder came from internal accruals.
Going forward, the company plans to incur additional capital expenditure of Rs.30 crore, taking the total capacity to 48,000 tonnes per year.
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Outlook
Gravita is expecting an increase in share of higher-margin business from the key overseas market across lead, aluminium and plastic recycling segment. Closer proximity to the port will increase efficiency of operations as import of scrap and export of finished goods will be carried out using the same port. This will result in optimization of logistics cost coupled with reduction in working capital cycle of the company. Overall, the plant is well positioned to cater to the growing demand from overseas market and with higher operational efficiency it is expected to further enhance profitability of the company, the filing added.
Featured photograph is an illustrative image of a battery recycling plant