Gravita India to Acquire RMIL for ₹559 Crore, Eyes Copper Market

Introduction

Gravita India Ltd., a prominent Jaipur-based recycling company, has announced a significant strategic move by signing definitive agreements to acquire a 98.95% stake in Rashtriya Metal Industries (RMIL). The deal, valued at a total consideration of ₹559.08 crore, marks Gravita's formal entry into the copper and copper alloy products sector, diversifying its existing portfolio of lead, aluminum, plastic, and rubber recycling.

The Acquisition Details

The transaction involves the purchase of 41,08,639 equity shares of RMIL, which will establish the company as a subsidiary of Gravita India upon completion. The deal is structured as a non-related party transaction and will be settled in cash. The company has indicated that the acquisition is expected to be finalized on or before March 31, 2026, subject to the completion of due diligence, execution of final documentation, and receipt of all necessary regulatory approvals.

As part of the agreement, shareholder SPV Global Trading Limited will sell its 54.90% stake in RMIL for approximately ₹310.17 crore. This acquisition is a key component of Gravita's strategy to broaden its operational base and enhance its market position as an integrated manufacturer of value-added recycled products.

Profile of Rashtriya Metal Industries

Established in 1946, Rashtriya Metal Industries is a well-regarded manufacturer of copper and copper alloy products, including strips and coils. The company operates an integrated manufacturing facility located in Sarigam, Gujarat, which spans approximately 15 acres and has an installed production capacity of 31,200 metric tonnes per annum (MTPA).

RMIL has cultivated a strong international footprint, with exports accounting for nearly 40% of its total revenue. Its products are supplied to key global markets, including the UAE, USA, Thailand, Sri Lanka, Kenya, Indonesia, Oman, and Saudi Arabia. The company has also built a significant presence in the domestic electrical and automotive application segments.

Financial Snapshot of RMIL

Rashtriya Metal Industries has demonstrated a solid financial performance, providing a strong foundation for this acquisition. For the fiscal year ending March 31, 2025, the company reported the following key metrics:

These figures highlight RMIL's substantial scale and operational profitability, making it an attractive asset for Gravita India's expansion plans.

Strategic Rationale for Gravita

The acquisition is a calculated step for Gravita India to diversify its revenue streams and reduce its dependence on the lead recycling business. By entering the copper sector, Gravita gains access to high-entry-barrier industries such as electrical components and automotive parts, which are supported by government policies like the 'Make in India' initiative.

This move will enable Gravita to leverage its expertise in recycling to process copper scrap into high-value copper alloys. The integration of RMIL's operations is expected to create strong synergies in procurement, logistics, and sales, ultimately strengthening Gravita's competitive positioning and improving its overall margin profile.

Market Reaction and Stock Performance

Following the announcement on Friday, March 13, 2026, shares of Gravita India Ltd. experienced volatility in the market. The stock had settled 0.35% lower at ₹1,500 on the preceding Thursday. The market's reaction reflects investor interest in the long-term strategic implications of the deal, especially considering the stock has declined over 19% since the beginning of the year. This acquisition could serve as a catalyst for future growth and a re-evaluation of the company's market value.

Advisory Roles in the Transaction

To ensure a smooth and structured transaction, Gravita India engaged professional advisory firms. Global M&A advisory firm Singhi Advisors served as the exclusive strategic and financial advisor for the deal. Legal counsel was provided by Crawford Bayley & Co., which acted as the legal advisor to Gravita.

Conclusion

Gravita India's acquisition of Rashtriya Metal Industries is a transformative step that aligns with its long-term vision of becoming a diversified, integrated recycling and manufacturing leader. By expanding into the copper vertical, the company not only broadens its product offerings but also taps into a market with growing global demand. The transaction is poised to deliver significant strategic benefits, from operational synergies to enhanced profitability, as Gravita moves towards its scheduled completion date of March 31, 2026.