Gravita India: How Is Company Outperforming Its Peers in the Recycling Sector

Synopsis: Gravita India has built a strong position in the global recycling industry through its pan-India and international footprint, diversified customer base, turnkey solutions, and focus on value-added products. Backed by regulatory tailwinds, disciplined hedging and aggressive expansion plans, the company maintains robust margins and is well-positioned for long-term growth.

The recycling sector in India and globally is becoming increasingly competitive, with companies striving to turn waste into valuable resources efficiently. Amid this, some players are managing to deliver stronger growth, higher margins, and wider market reach than others. What is it that gives Gravita India the edge to outperform its peers in the recycling space?

Gravita India Limited operates in the global recycling space, focusing on the recycling of lead, aluminium, plastic and rubber. The company’s business is built around converting waste into usable raw materials, supporting sustainability while creating economic value. Its long-term objective is to scale up as a globally relevant recycling company by improving process efficiency, adopting innovation and strengthening stakeholder value.

Gravita’s model benefits from the structural strength of the recycling industry, allowing it to steadily expand operations and widen its footprint across markets. The company is headquartered in Jaipur and runs recycling facilities across India as well as overseas locations.

Over the years, Gravita has developed a strong international presence, operating 13 modern and environmentally compliant recycling plants with a combined processing capacity of 3,45,659 MTPA. With operations spanning more than 70 countries and a recycling track record of over 30 years, the company has built capabilities across five distinct business verticals, giving it scale, diversification and global reach within the recycling ecosystemGravita’s Edge Over Others 

Global and Pan-India Operating Footprint

One of Gravita’s biggest strengths lies in the way it has built its operations across geographies. Instead of concentrating capacity in one region, the company has followed a clear strategy of starting small in new markets, scaling volumes gradually, and then setting up plants close to raw material sources. This approach lowers logistics costs, improves scrap availability, and allows recycling to happen closer to both procurement points and end customers.

Gravita’s footprint spans Europe, Asia, Africa and the Americas. Its presence includes Romania in Europe; multiple locations across India such as Jaipur, Jaipur SEZ, Kathua, Chittoor and Mundra; Sri Lanka in South Asia; Ghana, Senegal, Mozambique, Tanzania and Togo in Africa; and the Dominican Republic in the Americas. Many of these plants are located near ports, battery manufacturers or industrial clusters, which helps reduce freight expenses and distribution costs.

This diversified setup also gives Gravita flexibility. Scrap can be sourced from one region while finished products are supplied from another plant that is geographically closer to the customer, resulting in cost savings for clients and better asset utilisation for the company. During periods of arbitrage or capacity expansion, Gravita is also able to adjust sourcing mix. 

Deep and Cost-Efficient Procurement Network

Gravita’s scale advantage is reinforced by its strong scrap procurement network, which is difficult to replicate. The company operates 33 owned scrap yards and has built more than 1,900 touch points globally. Its total scrap collection exceeds 2,87,000 metric tonnes.

Region-wise, Africa remains a key sourcing hub with 27 owned yards, over 850 touch points and scrap collection of around 98,000 metric tonnes. Asia contributes roughly 1,41,000 metric tonnes through five owned yards and more than 1,000 touch points. The Americas add over 42,500 metric tonnes through 30+ touch points, while Europe and Australia contribute smaller but strategic volumes. This wide network ensures consistent availability of raw material at competitive prices, even during volatile market phases, giving Gravita a structural cost advantage over smaller or regionally limited peers.

As management highlighted, domestic sourcing during Q3FY26 dropped to around 25 percent, with imports accounting for 75 percent, due to inventory build-up and pricing opportunities. Once new capacities are operational, sourcing is expected to normalise to about 45 percent domestic and 55 percent imported, reflecting the company’s ability to optimise procurement based on market conditions.

Diversified and Sticky Customer Base

Gravita’s reach on the customer side is as wide as its procurement network. The company serves more than 200 domestic customers across 20 Indian states and over 50 international customers spread across 30 countries. Its client list includes leading names across batteries, automotive, cables, electronics, chemicals and infrastructure.

Long-standing relationships with companies such as Amara Raja, Tata Batteries, Exide, Clarios, Livguard, Luminous, Panasonic, Samvardhana Motherson, Polycab, Asian Paints, TVS, Sterlite Power, KEI, Philips Lighting, Korea Zinc, Trafigura and Glencore reflect the trust Gravita has built as a reliable supplier. This diversified customer mix reduces dependence on any single sector or geography and provides stable offtake even during cyclical slowdowns.

Turnkey Solutions and In-House Technology

Beyond recycling, Gravita has built a strong position in providing end-to-end turnkey solutions for recycling projects. The company offers complete solutions covering smelting, refining and recycling for lead, aluminium, plastic, copper and rubber. These projects are designed with a focus on low ownership cost, operational efficiency and environmental compliance, making them viable for clients of different sizes.

Gravita has executed more than 70 turnkey projects across countries such as Qatar, UAE, Saudi Arabia, Poland, Chile and others. It also offers annual maintenance contracts, technical consultancy and recycling services. Regular investment in research and development, PLC-based control and monitoring systems, and fully in-house recycling technology strengthen its execution capabilities. This vertical not only adds revenue but also positions Gravita as a technology partner rather than just a recycler.

Shift Towards Value-Added Products

Another key differentiator is Gravita’s increasing focus on customised and value-added products. These products command better margins and allow the company to capture a larger share of its customers’ overall product requirements. The share of value-added products in revenue has risen from 42 percent in FY22 to 46 percent in FY25 and is expected to reach around 50 percent by FY28.

In lead recycling, Gravita supplies customised alloys, lead bricks, red lead, lead sheets and lead oxides catering to batteries, cables, pigments, chemicals, radiation protection and construction. In plastics, the company produces a wide range of recycled granules such as ABS regrind, PPCP, HDPE and polypropylene granules, which are used across automotive, packaging, electronics and consumer goods industries.

The aluminium vertical focuses on recycled aluminium and foundry alloys for die casting and green aluminium applications. Products such as A380, ADC12, ADC6, HS1, AC4B, LM24, LM6 and HD4 alloys serve diverse industrial needs where precision, strength and durability are critical. This broad product mix enhances pricing power and improves overall contribution margins.

Strong Positioning Under Extended Producer Responsibility (EPR)

Regulatory changes are creating a meaningful tailwind for organised recyclers, and Gravita is well placed to benefit. With stricter implementation of Battery Waste Management Rules, Extended Producer Responsibility norms and GST compliance, scrap availability is gradually shifting from the informal to the formal sector.

In FY25, the formal recycling segment accounted for about 40 percent of the market, while the informal segment made up 60 percent. By FY26E, the overall market size is expected to grow to around Rs. 13,875 crores, with the formal segment rising sharply to 75 percent and the informal share dropping to 25 percent. Gravita’s pan-India presence and strong OEM relationships position it as a natural beneficiary of this transition.

As a certified Plastic EPR recycler, Gravita manages collection, processing and recycling of plastic, batteries, aluminium and tyre waste, generating EPR credits that are sold to companies to meet regulatory obligations. The company also provides consultancy services to help organisations design EPR strategies, manage data, comply with regulations and build sustainable waste management systems. This end-to-end EPR capability adds a new, regulation-driven revenue stream while deepening customer relationships.

Robust Hedging Framework Ensuring Margin Stability

Commodity price volatility is a key risk in recycling, but Gravita has addressed this through a disciplined hedging strategy. Since June 2016, the company has followed a back-to-back hedging approach where the metal equivalent of scrap purchased is sold on the same day. Customer contracts provide natural hedging, while forward contracts on the LME are used for balance quantities.

From June 2019 onwards, Gravita extended hedging to its core inventory as well. As a result, lead operations now enjoy stable margins and are largely insulated from price fluctuations. While aluminium and plastic still carry some exposure due to the absence of effective hedging mechanisms, the expected introduction of aluminium hedging on MCX could reduce volatility going forward. This risk management discipline sets Gravita apart from many peers.

Aggressive Expansion Backed by High CAPEX

Gravita’s growth strategy is supported by a large and clearly defined capital expenditure plan. The company has earmarked total CAPEX of around Rs. 1,225 crores up to FY28. About Rs. 850 crores is allocated towards expanding existing businesses, while the remaining amount is earmarked for entering new recycling segments such as lithium-ion batteries, paper and steel.

Key projects include an 80,000 MTPA lead capacity expansion at Mundra and a 45,000 MTPA expansion at Jaipur, both targeted for completion by Q4 FY26. The rubber recycling project at Mundra is expected to be commissioned in Q1 FY27, with revenues starting from Q2 FY27. Additionally, Gravita has increased its stake in Gravita Europe S.R.L to 95 percent, strengthening its presence in the European market.

Financial Performance and Margin Leadership

Operational performance further underlines Gravita’s competitive edge. In Q3 FY26, lead volumes showed steady growth both year-on-year and quarter-on-quarter. Plastic volumes rebounded sharply, rising 55 percent sequentially to 3,160 metric tonnes. Aluminium volumes declined during the quarter due to elevated metal prices, which led scrap aggregators to hold back material. As prices stabilise, procurement and volumes are expected to recover.

EBITDA per metric tonne stood at Rs. 23,000 for lead, Rs. 14,215 for aluminium and Rs. 10,462 for plastic, reflecting healthy unit economics. Revenue for the quarter remained flat at Rs. 1,017 crores, while adjusted EBITDA increased 13 percent year-on-year to Rs. 116 crores. PAT rose 32 percent year-on-year to Rs. 97.67 crores, with margins holding strong at 11.41 percent EBITDA and 9.60 percent PAT.

Notably, peers such as Baheti Recycling, Pondy Oxides and Jain Resource Recycling continue to operate with operating margins below 10 percent, highlighting Gravita’s superior profitability. With a clear Vision 2029 roadmap targeting volume CAGR above 25 percent, profitability growth over 35 percent and ROIC exceeding 25 percent, Gravita’s integrated model, scale advantages and regulatory tailwinds place it structurally ahead of the competition.

Gravita India’s outperformance in the recycling space is not driven by a single factor, but by a well-built operating model that combines scale, geography, cost control and execution capability. Its global and pan-India footprint, deep procurement network and diversified customer base allow the company to manage costs better than most peers while maintaining steady volumes across cycles. The focus on value-added products, turnkey solutions and strong EPR positioning further strengthens margins and creates multiple revenue streams beyond basic recycling.

Looking ahead, Gravita’s aggressive expansion plans, disciplined hedging framework and entry into new recycling segments place it on a strong long-term growth path. With margins consistently higher than peers and a clear roadmap under Vision 2029, the company appears structurally better positioned to benefit from industry formalisation, regulatory support and rising demand for sustainable materials, reinforcing its edge in the global recycling ecosystem.

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