Indian lead producer and exporter Gravita has confirmed plans to expand its lead-acid battery scrap processing operations overseas with two new facilities in Africa.
Gravita said it has acquired land for a plant in Ghana and “construction activities are in process” with a view to starting operations by March 2019.
The Ghana operation “will result in saving of logistics cost on the battery scrap which is currently imported to India, processed and re-exported to various countries”, company secretary Nitin Gupta said in a filing to the National Stock Exchange of India.
“This will also help the company to reduce its working capital cycle,” Gupta said.
A scrap metal processing plant in Tanzania is expected to start up in March 2019, Gupta said. Construction work has already begun and some key equipment has been sent to the country.
Meanwhile, a scrap plant planned for construction in Mundra, India has been “put on hold”, because of “changed market scenarios”— although Gravita gave no details. However, the company will review the situation before the end of 2018, Gupta said.
Gravita currently has 11 recycling plants across the world.
During the half year ended 30 September 2018, Gravita said revenue increased by 40.25% compared to the corresponding period in 2017.
Managing director Rajat Agrawal said: “We have continuously added production capacity and improved operational efficiency at our existing facilities. This has helped in achieving topline growth despite adverse market conditions. We expect better growth trajectory in coming quarters by adding more recycling capacities across the globe coupled with enhanced product portfolio.”