Gravita India's ₹565 Crore RMIL Deal Targets Copper Sector

Introduction to the Landmark Deal

Gravita India Ltd., a prominent Jaipur-based recycling company, has announced a significant strategic move by signing a binding term sheet to acquire up to a 100% stake in Rashtriya Metal Industries Limited (RMIL). The transaction, valued at approximately ₹565 crore, marks Gravita's formal entry into the copper manufacturing and recycling sector, diversifying its operations beyond its established verticals of lead, aluminium, plastic, and rubber. This acquisition is poised to make RMIL a subsidiary of Gravita, integrating a legacy business into its expanding portfolio. The deal is expected to be finalized on or before March 31, 2026, subject to due diligence and customary closing conditions.

Transaction Details and Structure

The acquisition involves the purchase of shares from the existing shareholders of RMIL through a Share Purchase Agreement. The total consideration is capped at ₹565 crore and will be settled entirely in cash, funded via bank transfer or cheque. The company has confirmed that this is not a related-party transaction, and none of Gravita's promoters or promoter group entities hold any interest in RMIL. Upon completion, RMIL will operate as a subsidiary, allowing Gravita to leverage its operational expertise and market reach to scale the copper business. Global M&A advisory firm Singhi Advisors served as the exclusive strategic and financial advisor for the transaction, with Crawford Bayley & Co. acting as the legal advisor to Gravita.

A Closer Look at Rashtriya Metal Industries

Established in 1946, Rashtriya Metal Industries is one of India's oldest and most respected manufacturers of copper and copper alloy products, including strips and coils. The company operates an integrated manufacturing facility in Sarigam, Gujarat, which spans over 58,000 square meters and has a production capacity of 31,200 metric tonnes per annum (MTPA). RMIL has built a strong reputation for quality and serves a diverse range of industries, including electrical, automotive, electronics, and defense. Notably, it is a key supplier to India's Ministry of Defence, highlighting its capability in producing high-performance and critical components.

Strong Financials and Global Footprint

RMIL has demonstrated consistent growth and robust financial health. For the fiscal year ended March 31, 2025, the company reported a turnover of ₹910 crore, an EBITDA of ₹60 crore, and a net worth of ₹300 crore. Its total assets stood at ₹558 crore. The company's revenue has shown a strong upward trajectory over the past three years.

Furthermore, RMIL has a significant international presence, with approximately 40% of its revenue coming from exports. Its key overseas markets include the UAE, USA, Thailand, Sri Lanka, Kenya, Indonesia, Oman, and Saudi Arabia. This established export network provides Gravita with immediate access to global copper markets.

Strategic Rationale and Synergies

The acquisition is a cornerstone of Gravita India's strategy to diversify its business and reduce its dependence on the lead segment. By entering the copper vertical, Gravita taps into a high-growth market fueled by the global shift towards green energy and the burgeoning electric vehicle (EV) industry, where copper is a critical component. The move aligns with the 'Make in India' initiative, strengthening domestic manufacturing capabilities for essential industrial metals. Gravita anticipates strong operational synergies with its existing plants in procurement, logistics, and sales, which will help improve its overall margin profile and competitive positioning.

Market Impact and Outlook

Following the announcement, shares of Gravita India will be in sharp focus. The stock settled at ₹1,500 on Thursday, March 12, 2026, having declined over 19% year-to-date. This strategic acquisition is expected to be viewed positively by investors as it signals a clear path for future growth and portfolio diversification. The integration of RMIL's value-added product portfolio is set to enhance Gravita's standing as a comprehensive, multi-metal recycling and manufacturing powerhouse. The transaction's completion by the end of the fiscal year will be a key milestone for the company's expansion plans.

Conclusion

Gravita India's acquisition of Rashtriya Metal Industries is a calculated and transformative step that broadens its industrial footprint into the vital copper sector. The ₹565 crore deal not only brings a profitable and well-established company into its fold but also aligns with long-term global trends in electrification and sustainability. As the company moves forward with due diligence, the successful integration of RMIL will be crucial in realizing the projected synergies and solidifying Gravita's position as a leader in the circular economy.