The recycling firm also plans to invest a total of Rs 62 crore to enhance its overall capacity to 48,000 MTPA
Gravita India has operationalised its new battery recycling unit near Mundra Port in Gujarat, the company informed.
The recycling firm also plans to invest a total of Rs 62 crore to enhance its overall capacity to 48,000 MTPA. In Phase-I, the plant has a capacity of 19,500 MTPA and the company has incurred a capital expenditure of Rs 32 crore on it, out of which Rs 26 crore has been funded through external borrowings and remaining by internal accruals.
“Going forward, the company has plans to incur additional capital expenditure of Rs 30 crore on this facility so as to increase the capacity of this plant from 19,500 MTPA to 48,000 MTPA,” Gravita India said in a regulatory filing.
Bullish on the growing electric mobility ecosystem of the country coupled with the government’s support to the sector through schemes and incentives, India’s largest battery recycling company announced that it is venturing into the electric vehicle battery recycling business in July this year.
Gravita said it expects an increase in share of higher-margin business from the key overseas market across lead, aluminium and plastic recycling segments.
“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 optimisation of logistics cost coupled with reduction in the working capital cycle of the company,” it said.
Overall, the company said its plant is “well positioned to cater to the growing demand from overseas markets and with higher operational efficiency it is expected to further enhance profitability”.
With the growth of electric vehicles forecasted to be imminent, the company expects the demand for recycling lithium batteries to become viable in six to seven years, by when it will be ready for the market.