Gravita India's ₹565 Crore Deal to Acquire Rashtriya Metal by 2026

Introduction to the Acquisition

Jaipur-based recycling major Gravita India Limited has announced a significant strategic move by signing a binding term sheet to acquire up to 100% of Rashtriya Metal Industries Limited (RMI). The deal, valued at approximately ₹565 crore, marks Gravita's formal entry into the copper manufacturing and recycling sector. This acquisition involves purchasing shares from existing stakeholders, including a majority stake from SPV Global Trading Limited, and is expected to transform RMI into a subsidiary of Gravita India upon completion.

The Structure of the Transaction

The acquisition is multifaceted, primarily involving two key transactions. SPV Global Trading Limited's board has approved the sale of its entire 54.90% stake in RMI, which consists of 22,79,410 equity shares, to Gravita India for a consideration of ₹310.17 crore. This divestment was approved by SPV Global's shareholders on February 6, 2026.

Simultaneously, Gravita India has outlined its broader intention to acquire up to a 100% equity stake in RMI. The total purchase consideration for the complete acquisition is estimated to be around ₹565 crore. The entire transaction is slated for completion on or before March 31, 2026, contingent upon the successful completion of due diligence, the execution of definitive agreements like the Share Purchase Agreement, and receipt of all necessary regulatory approvals.

Strategic Expansion for Gravita India

For Gravita India, a prominent player in lead, aluminium, and plastic recycling, this acquisition is a calculated step towards diversification. By entering the copper vertical, the company aims to increase its share of non-lead business, creating a more balanced and resilient operational portfolio. The company stated that the move will provide opportunities for backward integration and generate strong operating synergies with its existing plants in procurement, logistics, and sales.

Integrating RMI, a company with over seven decades of manufacturing heritage, allows Gravita to merge this legacy with its own global recycling leadership. Gravita plans to leverage RMI's integrated manufacturing facility in Sarigram, Gujarat, which has a production capacity of 31,200 million tonnes per annum (MTPA), to strengthen its market position.

A Strategic Divestment for SPV Global Trading

From the perspective of SPV Global Trading, whose primary operations are in investment and trading, the sale of its stake in RMI is a strategic divestment. Rashtriya Metal Industries was a material subsidiary, contributing significantly to SPV Global's consolidated financials. For the fiscal year ending March 31, 2025, RMI accounted for 97.36% of SPV Global's turnover and 98.55% of its net worth.

By divesting its majority holding, SPV Global unlocks substantial capital, which can be redeployed into its core business activities or other strategic initiatives. This move also reduces its exposure to the manufacturing sector, aligning with its primary focus on investment and trading.

A Closer Look at Rashtriya Metal Industries

Founded in 1946, Rashtriya Metal Industries Limited is one of India's oldest and most reputable manufacturers of copper and copper alloy products, including sheets, strips, and coils. The company has a strong international footprint, with approximately 40% of its products exported to markets such as the UAE, USA, Thailand, Sri Lanka, Kenya, and Saudi Arabia. Its products serve a wide range of industries, including automotive, electronics, power cables, and defence.

Key Financial Metrics

RMI has demonstrated robust financial performance, making it an attractive acquisition target. The table below highlights its key financial figures for the fiscal year 2025.

These figures underscore the company's stable revenue stream and solid financial health, providing a strong foundation for Gravita's expansion plans.

Market Impact and Future Outlook

The acquisition is set to create a significant shift in the non-ferrous metal industry landscape. With RMI becoming its subsidiary, Gravita India will gain immediate, substantial control over a well-established copper manufacturing operation. This integration is expected to enhance Gravita's competitive positioning and improve margin quality by combining efficient recycling capabilities with downstream value-added manufacturing.

The next steps involve finalizing the definitive transaction documents and securing the remaining approvals. Both companies are working towards the March 31, 2026 deadline to close the transaction. For the market, this deal signals a trend of consolidation and strategic diversification, as established recycling firms expand into new material verticals to build more integrated and resilient business models.

Conclusion

Gravita India's acquisition of Rashtriya Metal Industries is a landmark transaction poised to reshape its business trajectory. It represents a strategic diversification into the copper industry, leveraging the legacy and capacity of a 70-year-old manufacturer. For SPV Global Trading, it is a successful value-unlocking exercise. As the deal progresses towards its expected completion in 2026, it will be closely watched by industry stakeholders for its potential to create a new powerhouse in India's integrated metal recycling and manufacturing space.