GRAVITA INDIA

Recycler with a global footprint

Jaipur-based Gravita India, a small-scale company, is an undisputed leader in sustainable recycling, specializing in lead, aluminium, plastic and tyre recycling. Operating globally with 114 state-of-the-art facilities, the company converts waste into high quality materials for the automotive, construction and power sectors.

Established in 1992, Gravita has grown into a diversified multi-material recycling group across Asia, Africa and Europe. The company operates advanced recycling and manufacturing facilities in India at Jaipur (Rajasthan), Kathua (J&K), Mundra (Gujarat) And Chittoor (Andhra Pradesh), along with international plants in Romania, Ghana, Mozambique, Togo, Senegal, Tanzania and Sri Lanka. Supported by a strong global procurement network, the company serves customers in more than 70 countries worldwide.

Gravita’s core business spans lead battery recycling, aluminium alloy manufacturing, plastic recycling and waste tyre recycling. Its product portfolio includes specialised lead alloys, red lead, lead oxide, aluminium alloys and plastic granuals, recovered carbon black and tyre pyrolysis oil (TPO). The company has also executed more than 70 turnkey recycling projects globally, offering end-to-end solutions from design and engineering to commissioning.

As part of its strategic expansion, Gravita has launched a dedicated lithium-ion battery recycling vertical with a recycling plant at Mundra(Gujarat). The company has also announced its entry into the copper recycling segment.

FINANCES BOOM

Gravita has made rapid strides in its financial performance. During the last 12 years, its sales turnover has shot up more than 7 times from Rs 516 crore in financial 2014 to Rs 3,869 crore in fiscal 2025, with operating profit also spurting more than 7 times from Rs 44 crore to Rs 328 crore, and the profit at net level jumping 14 times from Rs 22 crore to Rs 313 crore. What is more, prospects for the company going ahead are all the more promising. Consider:

• Realising that diversification is essential for crafting robust and resilient strategies that combine risk mitigation with opportunity exploitation, the company has been steadily diversifying its activities. Starting mainly with lead refining, the company has entered new fields like rubber recycling, aluminium recycling (in Togo), and signed an MoU to establish its first battery recycling unit in Oman. In 2022-23, it also commissioned an aluminium recycling unit in Senegal and a plastic recycling unit in Ghana. In 2024-25, it started rubber recycling operations in Europe and aluminium recycling operations in Ghana. The company also expanded the recycling capacity at its Tanzania plant. All these diversifications and expansions have ensured sustainability in growth of the topline as well as the bottomline.
• In fiscal 2025-26, the company finalised the acquisition of a 98 per cent stake in Rashtriya Metal Industries Ltd (RMIL) for Rs 559.8 crore, marking a strategic entry into the copper recycling and manufacturing domain. This move is poised to leverage the growing demand for copper in sectors like electric vehicles and renewable energy, augmenting Gravita’s existing multi-metal recycling portfolio. This strategic acquisition has strengthened the company’s operations by adding copper and copper alloy production and recycling capabilities.

COPPER DEMAND

• Gravita’s diversification into copper fits with strong global market trends. The worldwide market for copper alloy scrap as well as copper recycling is expected to grow significantly, with projections showing a CAGR of 9.3-10.2%, potentially reaching over $119 billion by 2034. Shares of the company are quoted around Rs 1,560, and the price is expected to go up to around Rs 2,000 once the current depressed phase in the market is over.

PERFORMANCE INDICATORS (Rs. in crore)

GREENLAM INDUSTRIES

Shogun of engineered surfaces

New Delhi-headquartered Greenlam Industries, engaged in the manufacture of surfacing décor products and specialising in laminates, decorative veneers, engineered wood floors, engineered goods and plywood, is among the world’s top producers and Asia’s largest with a manufacturer of laminate sheets and compact boards per annum on a consolidated basis. The company has been beautifying spaces for years by infusing creativity into every piece of work and turning it into sheer pieces of beauty and brilliance. Greenlam is a name to be reckoned with in surfacing products in more than 121 countries, besides India.

With two decades of experience in the surface décor space, Greenlam is a pioneer in introducing global décor trends in India and international markets. The company can boast of five state-of-the-art manufacturing facilities spread across India and located at Behror in Rajasthan, Nalagarh in Himachal Pradesh, Prantij in Gujarat, Tinadivarnam in Tamil Nadu and Naidupeta in Andhra Pradesh.

Greenlam has a huge distribution network of over 40,000 distributors, dealers and retailers across the country. In the global market, the company operates through five international distribution centres and 22 global offices to export its products to more than 121 countries. Today, it has a 18 per cent marketshare in the organised laminate market in India and a 29 per cent share in laminate exports from India.

GROWTH BUMP

The company was steadily growing on the financial front till a year ago, with sales during the last 11 years expanding from Rs 926 crore in fiscal 2015 to Rs 2,569 crore in fiscal 2015. But operating profit, which had risen from Rs 93 crore in 2015 to Rs 296 crore in fiscal 2024, dropped to Rs 275 crore in fiscal 2015 and is all set to decline further in fiscal 2026. Correspondingly, the net profit, which had shot up around 7 times from Rs 19 crore in 2015 to Rs 138 crore in 2024, nosedived to Rs 68 crore in fiscal 2025 and is likely to dropsharply in fiscal 2026. However, prospects for the company are expected to start moving up from fiscal 2027 and the topline as well as bottomline should shoot up remarkably by fiscal 2030. Consider:

Though there has been a marked decline in demand for laminates in India of late, the outlook for the industry going ahead is highly promising. The management expects a sharp rebound in the business. According to experts, going ahead there will be a strong shift towards sustainability with huge demand for eco-friendly, low-emission and recycled materials. Key trends include textured matte finishes, bold colours and hyper-realistic wood grain textures. Greenlam is an undisputed market leader in laminates with its portfolio spanning 10,000 décor designs across thicknesses of 0.5-30 mm at multiple dimensions, catering to the residential, commercial, hospitality, healthcare, education and retail sectors. The company had an installed capacity 24.5 million sheets with 84.5% utilisation in Q1 of fiscal year 2026, with exports contributing 50% of total laminates. It is now expected that the demand for the company's laminates will be robust from FY 2027 onwards.

• The company is doing quite well on the export front with its products being sold it as many as 121 countries. The company has 5 international distribution centres and 22 international offices worldwide. The company is planning to extend its footprint to new geographies beyond 121 countries which are the importing the company's products. The company is now concentrating to spread its footprints in Poland, Germany, African countries and south east Asia for Greenlam which is the largest laminate market.
• The company's profitability which has been facing headwinds of late is expected to start improving from the next year. Global demand for laminates is expected to rise going ahead pushing up its profit margins. The ply and particle board - the new business segments have started attracting good demand and both the segments are expected to break even in 2027 and turn profitable thereafter. Stock price of the company has under the recent selling pressure come down to in the Rs.215-220 range. But many research houses have now given it a BUY rating. The share price is likely to reach Rs. 300 mark within a year.

PERFORMANCE INDICATORS (Rs. in crore)