Gravita India Expands into Europe with Romania Tyre Recycling Plant Acquisition

Gravita India Limited, a global leader in recycling, announced that its step-down subsidiary, Gravita Netherlands BV (GNBV), has signed a Memorandum of Understanding (MOU) to acquire a waste tyre recycling plant in Romania. This facility, with a capacity of around 17,000 MTPA, will mark Gravita’s first recycling operation in Europe.

The acquisition will be made through a special purpose vehicle (SPV) in Romania, with GNBV holding an 80% equity stake and the remaining share held by local Romanian partners. The total investment for this transaction is approximately ₹40 crore, with GNBV contributing ₹32 crore, pending detailed financial, environmental, and legal assessments.

GNBV aims to expand its recycling business across Europe by capitalising on market opportunities and forming strategic partnerships. This move will strengthen Gravita’s presence, grow its customer base, and enhance its competitive position in the European market. Gravita already operates similar rubber recycling plants in Senegal, Togo, Ghana, and Tanzania, aligning with its strategy of diversifying and expanding operations into new regions.

This acquisition is not classified as a related party transaction. The promoters or promoter group have no interest in the entity being acquired. Gravita Netherlands BV (GNBV) will not acquire the company directly but will instead acquire Access Auto Trading SRL’s fixed assets, including land, buildings, and machinery. A new special purpose vehicle (SPV) will be created in Romania to facilitate this, ensuring that the transaction is conducted at arm’s length. 

Acquisition Details

The total investment for the acquisition is around ₹32 crore, and it will be made in cash. GNBV will not be acquiring any shares in the existing entity but will purchase its fixed assets, including land and machinery. GNBV will hold 80% of the new SPV that will be created in Romania, along with full management control.

Reason and Impact of the Acquisition

The acquisition aligns with Gravita’s core business activities and those of its group companies. It will enhance Gravita’s presence in Europe, expand its recycling operations, and strengthen its regional market position.

About Access Auto Trading SRL

Access Auto Trading SRL, has been engaged in the trading and recycling of waste tyres in Romania since 2010. The company currently has a turnover of approximately ₹80 crore. Access Auto Trading SRL operates in the manufacturing and recycling industry, particularly in the recycling of waste tyres.

About Gravita India Ltd

Founded in 1992, Gravita India Ltd is one of India’s leading lead producers. The company operates in four main areas: lead recycling (its core business), aluminium recycling, plastic recycling, and turnkey projects. Gravita also specialises in recycling materials like used batteries, cable scrap, lead scrap, aluminium scrap, and plastic scrap.

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