Indian lead producer and exporter Gravita has revealed proposals to open nine new lead battery scrap sourcing centres in Africa— to feed its expanding recycling operations on the continent and boost the group’s bottom line.
The move comes just weeks after Gravita said it was expanding its lead-acid battery scrap processing operations overseas with two new facilities in Africa— in Ghana and Tanzania.
Gravita has now received relevant licences to run both African facilities, which are expected to start up this month.
The plant in Ghana “will result in saving of logistics cost on the battery scrap which is currently imported to India, processed and re-exported to various countries”, Gravita said. “This will also help the company to reduce its working capital cycle.”
Meanwhile, Gravita has decided to shift its existing Gandhidham scrap metals facility in India to a planned scrap plant in Mundra by May 2019 “as Mundra is much closer to the port than the Gandhidham facility and the company will also save the lease rentals which are being paid for Gandhidham”. Plans to develop Mundra had previously been “on hold”.
Managing director Rajat Agrawal said “stricter environmental norms” being introduced in India, in addition to increased public awareness about the benefits of recycling, were “key drivers of growth in the recycling industry”. He said Gravita’s recycled production is expected to be in the range of 75,000mt to 80,000mt in fiscal 2019, which ends next month.
Gravita currently has 11 recycling plants across the world. Last year, Gravita’s Jaipur-based lead smelting operation, which recycles used lead batteries and aluminium scrap, became the first Indian business to join the International Lead Association.