Gravita India to Acquire Rashtriya Metal for ₹565 Crore

Gravita India Enters Copper Sector with Major Acquisition

Jaipur-based recycling major Gravita India Limited has announced a significant strategic move, entering into a binding term sheet to acquire up to a 100% stake in Rashtriya Metal Industries Limited (RMIL) for a total consideration of approximately ₹565 crore. This acquisition marks Gravita's official entry into the copper recycling and manufacturing vertical, diversifying its operations beyond its established leadership in lead, aluminium, plastic, and rubber recycling. The transaction is expected to be completed on or before March 31, 2026, pending due diligence, regulatory approvals, and the execution of definitive agreements.

The Structure of the Transaction

The deal involves the purchase of shares from RMIL's existing shareholders. A key component of this acquisition is the sale of a 54.90% majority stake by SPV Global Trading Limited. The board of SPV Global Trading approved the sale of its 22,79,410 equity shares for a consideration of ₹310.17 crore. This final sale price represented a value enhancement of ₹8.15 crore over the initial minimum consideration of ₹302.02 crore, which was approved by SPV's shareholders on February 6, 2026. Upon completion, RMIL will transition from being a material subsidiary of SPV Global Trading to a subsidiary of Gravita India.

A Legacy in Copper Manufacturing

Founded in 1946, Rashtriya Metal Industries is one of India's oldest and most respected manufacturers of copper and copper alloy products, including sheets, strips, and coils. The company operates a manufacturing facility in Gujarat with an annual capacity of 31,200 million tonnes. For the financial year ending March 31, 2025, RMIL reported a turnover of ₹910 crore and a net worth of ₹300 crore. RMIL has a strong international footprint, with nearly 40% of its products exported to markets such as the UAE, USA, Thailand, Sri Lanka, Kenya, and Indonesia.

Strategic Rationale for Gravita India

For Gravita India, this acquisition is a pivotal step in its long-term growth strategy. The company aims to become a diversified, multi-metal global recycling player. By integrating RMIL, Gravita gains access to a 70-year-old manufacturing legacy and a new business vertical in copper. Management stated the move would “accelerate our journey toward a diversified, multi-metal future and reinforce our mission to build a sustainable global recycling footprint.” The acquisition is expected to create strong operational synergies with Gravita's existing plants in procurement, logistics, and sales, while also providing opportunities for backward integration.

Financial Details and Funding Strategy

The acquisition values RMIL at a favorable P/E ratio of around 10 based on its FY2025 financials. Gravita India plans to fund this transaction through internal accruals and surplus funds from a Qualified Institutional Placement (QIP) raised last year. The company confirmed that the ₹565 crore outlay is part of its broader capital expenditure plan of ₹1,200-₹1,300 crore by FY29 and will not require any fresh debt. Gravita aims to improve RMIL's Return on Invested Capital (ROIC) from the current 14% to 25% once operations are stabilized and integrated. This acquisition aligns with Gravita's target of achieving a ₹1,000 crore EBITDA by FY29.

Divestment for SPV Global Trading

From the seller's perspective, the divestment is a strategic decision by SPV Global Trading to unlock capital. RMIL was a material subsidiary, contributing 97.36% of SPV's consolidated revenue and 98.55% of its net worth in FY2025. By selling its stake, SPV Global Trading can generate significant funds to focus on its core investment and trading operations while reducing its exposure to the manufacturing sector. The transaction was confirmed to be outside the ambit of related party transactions.

Market Outlook and Next Steps

This acquisition strengthens Gravita's position in the non-ferrous metals market and provides it access to high-entry-barrier segments like automotive and electrical applications, which are aligned with the government's 'Make in India' initiative. The combination of Gravita's recycling expertise with RMIL's manufacturing capabilities is expected to enhance margin quality and create long-term value. The next steps involve completing the due diligence process, executing the definitive Share Purchase Agreement, and securing all necessary regulatory and other approvals to finalize the transaction by the March 2026 deadline.