Gravita India: Lead production commences at Tanzania plant

Gravita India Limited has informed the bourses that its step-down subsidiary Gravita Tanzania Limited which is situated in Tanzania, East Africa has started commercial production of lead from its new plant having an annual capacity of 3,000 MTPA. It is the first export-oriented recycling plant in Tanzania.

The company has made an investment of Rs. 9.5 crores for the procurement and commissioning of this new recycling plant which will be funded through its internal accruals. It also plans to start recycling of aluminium from this plant in the future with the capacity of 6,000 MTPA.

The company is expecting revenue of Rs. 30 crores with gross margins of 18 per cent from this lead recycling plant during FY20. The production from this plant will cater to the needs of diversified lead dealers and industries across the globe and the company’s market share would rise gradually in the domestic and international market.

Gravita India had earlier received Free Zone and EPA license to run the facility at Ghana. It had also planned to shift its Gandhidham operations to Mundra to save its logistics costs and rental costs.

On Monday, it jumped by 4.6 per cent to make an intra-day of Rs. 95 in the morning trading session.