Shares of Gravita India Ltd, Lead products manufacturer were trading in the red and 3% lower on 11 September despite the company announcing acquiring a recycling plant in Romania. 

In its regulatory filing, the company said that its step down subsidiary, Gravita Netherlands BV has signed a Memorandum of Understanding (MoU) to acquire a waste tyre recycling plant in Romania with an approximate capacity of 17,000 million tonnes per annum. 

The company acquired this facility from a company in Romania, making it the company’s first recycling facility in Europe. 

The company will do this acquisition by forming a separate SPV in Romania, wherein Gravita Netherlands BV will hold 80% equity with management control in the SPV, whereas the remaining equity stake will be held by other partners based in Romania. 

The total investment involved in this transaction will be around Rs 40 crore, and the company will invest around Rs 32 crore through its contribution. The transaction is subject to in-depth financial, legal, and environmental due diligence. 

GNBV plans to expand its recycling business throughout Europe, capitalising on new market opportunities and forming strategic partnerships to fuel growth. This acquisition aims to enhance its presence, grow its customer base, and improve competitiveness in the European market. 

The company already operates rubber recycling facilities in Senegal, Togo, Ghana, and Tanzania, aligning with its broader vision of diversification and expanding its recycling business across multiple geographies.

At 3:26 pm, the shares of Gravita India were trading 2.65% lower at Rs 2,229.95 on NSE.

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