Gravita commits Rs 1,680 crore through FY29 for recycling

Gravita India Limited plans Rs 1,680 crore of capital expenditure through FY29, directing Rs 815 crore to existing businesses and the balance to new verticals including copper and lithium-ion battery recycling. The copper buildout pairs 59,200 metric tonnes per annum at Mundra with 29,400 metric tonnes per annum at Mandvi.

How will Gravita allocate capital expenditure through FY29?

Gravita will allocate Rs 815 crore of its Rs 1,680 crore capital-expenditure programme to strengthen and expand existing businesses through FY29. Management said the remaining Rs 865 crore will be directed towards new recycling verticals, including copper and lithium-ion battery recycling.

The plan links the spending programme with Gravita's stated effort to raise the contribution from value-added products. Value-added products represented 64% of total sales in H1 FY27, while management's Vision 2030 objective is to derive more than 60% of revenue from value-added offerings.

Management did not provide a year-by-year deployment schedule for the Rs 1,680 crore programme or an individual allocation for lithium-ion battery recycling. It said lithium-ion processing and higher-value recovery would scale as battery feedstock availability increases alongside electric-vehicle growth.

How will Mundra and Mandvi create Gravita's copper chain?

Gravita intends Mundra to supply raw material to Mandvi, creating integration across its copper recycling operations in Gujarat. The Mundra project will add 59,200 metric tonnes per annum of copper recycling capacity at an estimated investment of Rs 64 crore, with phased commissioning planned by March 2029.

At Mandvi, Gravita is developing a 29,400-metric-tonne-per-annum copper recycling facility with estimated investment of Rs 160 crore. Management said on October 28, 2026, that the project remained on track for commissioning within the next 12 months and would support backward integration and a wider value-added product portfolio.

Both Gujarat facilities are to be funded through internal accruals, according to management. Their combined planned capacity of 88,600 metric tonnes per annum sits alongside Gravita's Rs 94.42 crore approved subscription to the rights issue of Rashtriya Metal Industries Limited, against a total rights issue of Rs 94.81 crore.

How is Gravita seeking copper scrap for its expansion?

Gravita is seeking direct scrap sourcing in the United States to reduce dependence on aggregators supplying its Indian recycling operations. Its board approved the incorporation of a wholly owned subsidiary proposed to be named Gravita Recyclers USA, Inc., which would establish a procurement network in the US and neighbouring countries.

Management said the planned US yards would source material for Indian copper operations and, to some extent, lead operations. Copper scrap from the US already reaches Gravita, but management said much of it is bought through aggregators; the intended model is to procure from smaller yard owners, consolidate the material and import it into India for recycling.

The new network is part of Gravita's response to supply and logistics disruption during FY27. Management said it expanded procurement into geographies that had previously been avoided because they were more costly, and said bookings from those areas had begun in the preceding quarter, with some material expected to start arriving in Q3 FY27.

Domestic sourcing is another element of the plan. Management said the 57th Goods and Services Tax Council recommended a reverse-charge mechanism for electrical and electronic waste scrap purchased from unregistered suppliers, while reverse charge had already come through for battery scrap; it expects this to support domestic volumes in Q3 and Q4 FY27 and the following year.

What is copper contributing before the new facilities open?

Copper operated at 50% capacity utilisation in H1 FY27, and copper sales rose 12% following Gravita's entry into the segment through Rashtriya Metal Industries Limited, or RMIL. The current business therefore provides a copper and copper-alloy base while Mandvi is built and Mundra is commissioned in phases.

RMIL contributed Rs 420 crore of Gravita's consolidated revenue in Q2 FY27 and recorded an earnings before interest, tax, depreciation and amortisation, or EBITDA, margin of 8.5%. At the consolidated level, Q2 FY27 revenue rose 38% year on year to Rs 1,427 crore, while adjusted EBITDA increased 28% to Rs 143.37 crore.

Copper EBITDA per tonne was Rs 84,671 in Q2 FY27, compared with Rs 22,620 for lead, Rs 22,664 for aluminium and Rs 10,334 for plastics. Management attributed the copper result to changes in raw-material and sales mix, higher capacity utilisation, economies of scale and some high-value product orders.

Management said it expects copper EBITDA to settle around Rs 65 to Rs 70 per kg over the next few quarters. It further said EBITDA could rise to about Rs 80 to Rs 90 per kg in the next two to three years once recycling facilities provide backward integration to RMIL.

Which execution milestones will determine Gravita's progress?

The closest project milestone is Mandvi's expected commissioning within 12 months of the October 28, 2026 earnings call, followed by Mundra's phased commissioning by March 2029. Meeting those dates would connect the 29,400-metric-tonne-per-annum Mandvi facility with the larger 59,200-metric-tonne-per-annum Mundra expansion.

RMIL's utilisation is a separate operating milestone. Management said it had ordered machinery to remove production bottlenecks and expected utilisation to rise to around 65% to 70% in two to three quarters, from the 50% reported in H1 FY27.

Management said moving utilisation above the 65% to 70% range would require further capital expenditure to increase the system's overall capacity. It estimated that the additional capacity expansion could take around three years, making debottlenecking and further investment distinct stages of the copper ramp-up.

Conclusion

Gravita's Rs 1,680 crore programme combines expansion of established recycling businesses with a larger presence in copper and lithium-ion battery recycling. The copper strategy has immediate operating support from RMIL, which contributed Rs 420 crore of Q2 FY27 revenue, and planned physical integration through the Mundra and Mandvi projects.

The next items to watch are Mandvi's commissioning within 12 months of October 28, 2026, Mundra's phased delivery by March 2029 and RMIL's target of 65% to 70% utilisation within two to three quarters. The development of US procurement yards, new sourcing geographies and domestic reverse-charge arrangements will also determine whether scrap availability matches management's expansion plans.