Gravita India To Add 59,200 MTPA Copper Recycling Capacity At ₹64 Crore Investment

Market snapshot: Gravita India Limited has announced plans to expand its copper recycling capacity at its Mundra facility in Gujarat by 59,200 MTPA. The expansion involves an estimated capital expenditure of ₹64 crore, which will be entirely funded through internal accruals. The capacity addition is expected to be commissioned in phases by March 31, 2029, and will act as a backward integration for its proposed Mandvi plant.

Data Snapshot

• Planned addition of 59,200 MTPA copper recycling capacity at the Mundra, Gujarat facility.
• Estimated capital expenditure of ₹64 crore to be funded entirely through internal accruals.
• The proposed capacity expansion is scheduled to be commissioned in phases by March 31, 2029.

What's Changed

• In May 2026, Gravita approved a ₹160 crore capital expenditure for a 29,400 MTPA greenfield copper recycling plant in Mandvi, Gujarat; the new Mundra facility expansion of 59,200 MTPA will now serve as a backward integration for it.
• The company has scaled its strategic copper recycling focus, building on its July 2026 completion of the 99.44% stake acquisition in Rashtriya Metal Industries Limited (RMIL) for ₹561.84 crore.

Key Takeaways

• Strategic Expansion in Non-Lead Segment: The capacity addition at Mundra accelerates Gravita’s diversification into copper recycling, reducing reliance on its core lead recycling business.
• Backward Integration Synergy: The Mundra facility's output will feed the proposed Mandvi plant, securing raw material sourcing and improving operational integration.
• Phased Execution by March 2029: The ₹64 crore expansion will be executed in phases by March 31, 2029, and will be completely self-funded through internal accruals without external debt.
• Logistical Advantages: Proximity to Mundra Port ensures efficient scrap sourcing and cost-effective delivery to domestic and international markets.

SAHI Perspective

Gravita's decision to self-fund the ₹64 crore Mundra copper recycling expansion highlights its strong internal accruals and conservative financial strategy. Following the ₹561.84 crore RMIL acquisition in July 2026, which marked Gravita's entry into the high-margin copper alloys business, this backward integration move at Mundra secures its supply chain. By adding 59,200 MTPA of capacity, Gravita is positioning itself to capture the rising demand for recycled copper while improving margins through cost control and supply-chain integration.

Market Implications

The announcement underlines Gravita's ongoing pivot toward a multi-commodity recycling model. Scaling non-lead capacities is a key driver for margin expansion, as copper and copper alloys offer superior realization profiles. The domestic recycling sector is seeing high regulatory support under the waste management rules, and Gravita's prompt capacity setup keeps it ahead of the competition.

Trading Signals

Market Bias: Bullish

The capacity expansion of 59,200 MTPA at Mundra with an investment of ₹64 crore reinforces Gravita's high-margin non-lead diversification strategy. Supported by healthy Q1 FY27 revenue of ₹1,475.06 crore (up 41.8% YoY) and low leverage, the phased expansion will drive long-term structural margin improvements.

Overweight: Recycling, Non-ferrous Metals, Circular Economy

Trigger Factors:

• Phased commissioning of the 59,200 MTPA copper recycling line at Mundra by March 2029.
• Margin improvements from backward integration synergies with the proposed Mandvi plant.
• Volume growth and scrap sourcing efficiency through Mundra Port.

Time Horizon: Medium-term (3-12 months)

Industry Context

The non-ferrous metal recycling industry, particularly copper, is experiencing structural growth driven by the electrical, electronics, and defense sectors. Historically dominated by lead recycling, companies like Gravita are diversifying into copper to capture higher value addition. The government's emphasis on circular economy principles and stricter recycling targets provides a supportive regulatory framework for organized players.

Key Risks to Watch

• Execution risk associated with the phased commissioning of the 59,200 MTPA capacity by March 2029.
• Volatility in global copper scrap prices which could impact raw material procurement costs and operating margins.
• Sourcing challenges for high-quality copper scrap in domestic and international markets.

Recent Developments

In July 2026, Gravita reported robust Q1 FY27 financial performance, with consolidated revenue jumping 41.8% YoY to ₹1,475.06 crore and net profit rising 14.3% YoY to ₹106.37 crore. The company also finalized the acquisition of a 99.44% stake in Rashtriya Metal Industries Limited (RMIL) for ₹561.84 crore and announced the operational closure of its minor subsidiary Gravita Metal to consolidate manufacturing at its Jaipur plant.

Closing Insight

Gravita India’s ₹64 crore copper expansion at Mundra marks a disciplined step toward its Vision 2029 targets of scaling non-lead revenue. By focusing on backward integration and self-funding the capex, the company balances growth with fiscal prudence, creating a robust framework for long-term value creation.

High Performance Trading with SAHI.