Godawari Power & Ispat Limited (GPIL), a leading player in the power and steel industry, recently announced two major strategic developments approved by its Board of Directors during a meeting on November 6, 2024. These initiatives are part of the company's efforts to expand into high-growth sectors and diversify its portfolio.

Launch of OPVC Pipes Manufacturing Unit

To tap into the increasing demand for cost-effective OPVC pipes, GPIL plans to establish a new manufacturing unit dedicated to OPVC and PVC pipes. The company expects this initiative to:

• Contribute an additional ₹200 crore annually to its revenue once the facility reaches full capacity.
• Replace traditional ductile iron pipes with more efficient OPVC options, in line with market trends.

The project is anticipated to cost around ₹125 crore, including working capital requirements, demonstrating GPIL's commitment to exploring innovative, high-potential business lines.

Acquisition of R.G. Pigments Pvt. Ltd.

As part of its diversification strategy, GPIL will acquire a 60% equity stake in R.G. Pigments Pvt. Ltd. (RGP), a Rajasthan-based company specializing in the recycling of non-ferrous metal industrial waste. This acquisition is valued at ₹56.75 crore and aims to diversify GPIL’s business into recycling and sustainable waste management. Key details of this acquisition include:

• Targeted Capacity Expansion: RGP plans to expand its production capacity from 7,500 MTPA to 32,500 MTPA, catering to the rising demand for recycled non-ferrous metals.
• Background of RGP: Incorporated in 1996, RGP reported annual turnovers of ₹40.03 crore, ₹37.88 crore, and ₹46.70 crore for FY 2021-22, 2022-23, and 2023-24, respectively.

This acquisition aligns with GPIL’s goal of venturing into sustainable industries and supporting India’s circular economy.

Extraordinary General Meeting (EGM) and Shareholder Approval

To move forward with the new business line, GPIL has scheduled an Extraordinary General Meeting (EGM) on December 11, 2024. During this meeting, shareholders will vote on amendments to the Memorandum of Association (MOA) to enable the company to formally adopt OPVC pipe manufacturing and allied businesses.

Conclusion

These strategic moves position Godawari Power & Ispat Limited to capitalize on growth opportunities in sustainable manufacturing and recycling sectors, underscoring the company's vision for long-term diversification. With strong support for green solutions, GPIL continues to build a robust, future-oriented portfolio, enhancing its competitiveness and growth potential across multiple industries.

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