Gravita India Limited, a leading name in the recycling industry, has successfully completed the acquisition of a waste tyre recycling plant in Romania. The acquisition was executed through a Special Purpose Vehicle (SPV) formed in Romania, where Gravita Netherlands BV (GNBV), a step-down subsidiary of Gravita India, holds 80% equity with management control, while the remaining equity is held by other partners based in Romania.

This acquisition was initially announced by the company on September 11, 2024, and the completion of the transaction was disclosed on March 27, 2025, in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the Acquisition

The waste tyre recycling plant acquired through this transaction has a processing capacity of approximately 18,000 Metric Tons Per Annum (MTPA). The total investment made in this transaction amounts to approximately ₹40 crore, out of which Gravita Netherlands BV (GNBV) contributed ₹32 crore towards its shareholding and management control of the SPV.

Strategic Significance of the Acquisition

The acquisition of this waste tyre recycling plant aligns with Gravita India’s strategic expansion plan to establish its global footprint in the recycling industry. With the rising demand for sustainable waste management solutions, this acquisition provides Gravita with an opportunity to diversify its portfolio and leverage the growing circular economy in Europe.

By securing majority ownership and management control of the newly formed SPV in Romania, Gravita India aims to optimize operations, increase production capacity, and strengthen its waste management and recycling capabilities in the region.

Structure and Investment Details

• Special Purpose Vehicle (SPV): Formed in Romania to acquire and operate the waste tyre recycling plant.

• Equity Holding: GNBV holds 80% equity with management control, while the remaining 20% is held by local partners.

• Investment Contribution: GNBV invested ₹32 crore of the total ₹40 crore transaction value.

Benefits and Strategic Implications

1. Expansion of Global Presence: The acquisition positions Gravita India to expand its operations across Europe and gain a strong foothold in the waste management sector.

2. Increased Recycling Capacity: The addition of an 18,000 MTPA waste tyre recycling plant enhances Gravita’s overall recycling capacity and operational efficiency.

3. Sustainable Growth and Profitability: Leveraging its majority control in the SPV, Gravita India plans to optimize operational processes and maximize returns, thereby contributing to long-term sustainability and growth.

Regulatory Compliance and SEBI Disclosure

The acquisition and subsequent disclosures comply with Regulation 30 of SEBI (LODR) Regulations, 2015, along with the guidelines specified in SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated 13 July 2023. The initial intimation regarding the acquisition was made on September 11, 2024, and the details of the completed acquisition were provided to:

• BSE Limited (BSE) – Company Code: 533282

• National Stock Exchange of India Limited (NSE) – Company Code: GRAVITA

Impact on Gravita India’s Business Strategy

The acquisition reinforces Gravita India’s commitment to diversifying its operations and strengthening its recycling portfolio. By expanding its presence in European markets, Gravita India aims to:

• Harness advanced recycling technologies for waste tyre management.

• Build strong relationships with local partners to facilitate seamless operations.

• Leverage its expertise to ensure compliance with global environmental standards.

Growth Prospects in the European Recycling Sector

With growing concerns around sustainable waste management and carbon footprint reduction, the European Union has been actively promoting circular economy initiatives. This acquisition allows Gravita India to tap into these emerging opportunities, driving growth in the waste tyre recycling industry.

The acquired plant’s 18,000 MTPA capacity positions Gravita India to meet rising demand for recycled materials and contribute to environmental sustainability. By securing a majority stake and management control, Gravita India can optimize plant operations and enhance profitability.

Potential Revenue Contribution and Operational Synergies

The acquisition is expected to positively impact Gravita India’s revenue and profitability over the coming years. Leveraging advanced recycling technologies and efficient management practices, the company aims to maximize operational synergies and deliver superior value to its stakeholders.

The integration of this waste tyre recycling plant into Gravita’s existing operations will:

• Enhance cost efficiency through streamlined operations.

• Expand revenue streams by catering to diverse market segments.

• Strengthen Gravita’s position as a leader in sustainable waste management solutions.

Disclosure and Compliance Summary

Gravita India has diligently followed all regulatory requirements for disclosure and compliance, ensuring that stakeholders are informed about the completion of this strategic acquisition. The intimation to both BSE and NSE was made in accordance with SEBI regulations.

Key Takeaways

1. Acquisition Completed: Gravita India has successfully acquired a waste tyre recycling plant in Romania with a capacity of 18,000 MTPA.

2. Investment Structure: GNBV, a step-down subsidiary of Gravita India, has invested ₹32 crore, securing 80% equity and management control.

3. Strategic Expansion: The acquisition supports Gravita India’s goal of expanding its global footprint and strengthening its presence in the European recycling sector.

Conclusion

The completion of this acquisition marks a strategic milestone for Gravita India, enabling the company to expand its recycling capabilities and strengthen its presence in the European market. With a controlling stake and management control of the newly formed SPV in Romania, Gravita India is well-positioned to capitalize on emerging opportunities in the waste management sector and drive sustainable growth in the coming years.

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