Also accelerates process of establishment of new unit at Mundra, Gujarat
Gravita India announced that Recyclers Ghana, a step down subsidiary of the company situated at Ghana, West Africa has enhanced the production capacity of its exiting Lead recycling plant from 12,000 MTPA to 16,200 MTPA.The Group has made an investment of Rs. 10 crore for the above expansion and till date approx. Rs. 31 crore has been invested for establishment of this recycling plant having capacity of 16,200 MTPA which has been invested through internal accruals of the company.
Recyclers Ghana has also started manufacturing of customized products wherein company enjoys the better margins. The group is expecting a revenue contribution of approx. Rs. 200 crore along with Gross Margin of around 15% from this step down subsidiary in F.Y. 2021-22.
Further, due to increase in domestic procurement the company has accelerated the process of establishment of new unit at Mundra, Gujarat which expected to complete by August 2021. Establishment of Mundra plant will help the company in saving the inward and outward logistics cost as Mundra facility is much closer to the port which in turn will reduce the working capital requirement of the company. Furthermore, the above expansions will increase the share of business from overseas market which will result in higher margins.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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