Gravita India to acquire Romanian rubber recycling plant

Gravita India Limited, a leading recycling company with global presence and 12 environmentally conscious state-of-the-art manufacturing plants across Asia and Africa, has a capacity of over 300,000 tonnes per annum across multiple scrap recycling verticals. The company announced that its subsidiary, Gravita Dutch BV (GNBV), has signed a Memorandum of Understanding (MoU) to acquire a scrap tyre recycling plant with an annual capacity of approximately 17,000 tonnes from an existing entity in Romania. This will be Gravita’s first recycling plant in Europe.

The acquisition will be done through the formation of a separate SPV in Romania, in which GNBV will hold 80% equity and management control, while the remaining equity will be held by other partners based in Romania. In addition, the total investment in the transaction will be approximately Rs 40 crore, with GNBV investing approximately Rs 32 crore, subject to in-depth financial, environmental and legal due diligence.

GNBV also plans to expand its recycling business in the European market, capitalizing on new market opportunities and establishing strategic partnerships to drive growth. This acquisition will enhance its presence, expand its customer base, and strengthen its competitive advantage in the European market.

The company has established similar rubber recycling facilities in Senegal, Togo, Ghana and Tanzania, in line with the company's vision of diversification and expansion plans to replicate recycling operations in different regions.