Gravita India Expands Mundra Lead Recycling Capacity with Rs 49 Crore Investment

Gravita India Ltd has completed a major capacity expansion at its lead recycling facility in Mundra, Gujarat, lifting annual output capability by 80,300 metric tons per annum (MTPA), the company disclosed in a regulatory filing dated Feb. 25. The move, financed through internal accruals, comes as demand for recycled lead strengthens in both domestic and export markets.

The expansion increases the Mundra unit’s total installed capacity from 64,800 MTPA to 145,100 MTPA. Management said the existing capacity had been operating near full utilization, prompting the latest addition. The capital outlay for the project is approximately Rs 49 crore and will be deployed during the 2025–26 financial year.

Gravita India, headquartered in Jaipur, is one of the country’s leading secondary lead producers, supplying refined lead and lead alloys used primarily in battery manufacturing. India remains one of the world’s largest markets for lead-acid batteries, supported by automotive replacement demand, industrial backup power systems and renewable energy storage applications. Analysts note that tighter environmental standards and supply-chain localization trends have accelerated interest in recycled metals over primary extraction.

Industry data show that recycled lead accounts for a dominant share of global refined lead production, often exceeding 60 percent in mature markets. Observers say capacity expansions in secondary smelting reflect both sustainability pressures and margin advantages, as recycled feedstock can be more cost-effective when scrap availability is stable.

The Mundra facility, strategically located near a major port, provides logistical advantages for importing scrap and exporting finished metal. Market participants say proximity to port infrastructure can reduce freight costs and improve turnaround times, particularly for exporters serving Middle East and Asian markets.

Company officials indicated the investment will be funded entirely through internal accruals, signaling balance sheet strength and cash flow stability. The project is scheduled for completion within the 2025–26 financial year. Once operational at full capacity, the enhanced unit is expected to support Gravita’s broader strategy of scaling recycling operations and increasing its share in value-added lead products.

Analysts say the expansion positions the company to benefit from steady battery demand growth, though margins will depend on scrap supply dynamics and global lead price movements in the coming quarters.

Source: Gravita

SUNSHINE Spotlight: Gravita India’s Mundra expansion underscores rising reliance on recycled lead as demand and sustainability pressures reshape the metals supply chain.