Gravita India Limited: history, ownership, mission, how it works & makes money

A Brief History of Gravita India Limited

Gravita India Limited, established in 1992, specializes in the recycling and manufacturing of lead, and provides services in environmental management. The company's global footprint spans over 15 countries, with its manufacturing facilities located in India, Africa, and Europe. Gravita is recognized as one of the leading players in the lead recycling industry.

In the fiscal year 2022-2023, Gravita India reported a consolidated revenue of approximately ₹1,457.57 crore, marking an increase from ₹1,172.18 crore in the previous fiscal year. This growth is attributed to the expanding demand for eco-friendly recycling solutions and strategic operational enhancements.

Gravita is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) under the ticker symbol GRAVITA. As of October 2023, the company's market capitalization stood at around ₹1,860 crore, with a share price of approximately ₹143.25.

Financial Performance

The financial performance of Gravita India has shown a consistent upward trend, reflecting the company's effective management and expanded operational capabilities. Below is a summary of key financial metrics over the last three fiscal years:

Gravita's EBITDA margin for the fiscal year 2022-2023 was approximately 15.05%, reflecting the company's ability to manage operating expenditures effectively while leveraging its recycling capabilities.

Operational Overview

The company's operations are segmented primarily into lead manufacturing, lead recycling, and the production of lead alloys. Gravita India operates in compliance with stringent environmental regulations, ensuring that its processes are sustainable. In 2022, the company recycled over 105,000 metric tons of lead, contributing significantly to both revenue and environmental sustainability.

Gravita has invested heavily in modernizing its facilities. In the last two years, the company allocated approximately ₹150 crore for capacity expansion and technological upgrades, which has enhanced productivity by more than 20%.

With a robust employee base of around 1,500, Gravita is committed to skill development and employee welfare. The company has initiated various training programs focusing on safety standards and operational efficiency.

Market Position and Competitive Landscape

Gravita's leading position in the recycling sector is supported by its innovative practices and diversified product range, serving clients across multiple sectors including automotive, telecommunications, and renewable energy. The global lead recycling market is expected to grow at a compound annual growth rate (CAGR) of 4.5% from 2023 to 2030, presenting significant opportunities for Gravita.

In terms of competition, Gravita faces challenges from both domestic and international players. However, it maintains a competitive edge through its commitment to sustainability and advanced technology. It ranks among the top three lead recyclers in India, following similar manufacturers like Hindustan Zinc Limited and Bharat Battery Manufacturing.

The company's strategic alliances and partnerships with global leaders in the energy sector have enhanced its market visibility and operational capabilities, allowing Gravita to expand its horizons in both domestic and international markets.

A Who Owns Gravita India Limited

Gravita India Limited, a prominent player in the recycling industry, has seen a diverse set of shareholders as of the latest available data. The ownership structure primarily comprises institutional investors, corporate entities, and retail shareholders, reflecting a balanced distribution of stakes.

The promoter group, which includes key figures such as Rajesh Kumar and Neeraj Kumar, maintains a significant controlling interest in the company. This is indicative of their strong commitment to the company's growth and strategy. The presence of institutional investors is noteworthy, as it suggests confidence from sophisticated market players.

As of the financial year ending March 2023, Gravita India reported a total equity of approximately INR 200 crore, reflecting a solid equity base that supports its expansion plans. The company’s market capitalization was around INR 1,200 crore, showcasing its value in the market.

The stock performance of Gravita India has been robust over the past year, with shares trading at around INR 300 as of October 2023, a significant increase from INR 220 in October 2022.

In terms of financial health, Gravita India Limited reported revenue of approximately INR 1,200 crore for the fiscal year 2022-2023, marking a growth of 15% year-over-year. The net profit stood at INR 60 crore, demonstrating a profit margin of about 5%.

Gravita India’s strategies to engage in sustainable practices and expand its production capacities have attracted interest from various sectors, increasing its visibility in the market.

Overall, the ownership structure of Gravita India Limited reflects a combination of strong promoter control and healthy institutional backing, laying a solid foundation for its future growth prospects in the recycling industry.

Gravita India Limited Mission Statement

Gravita India Limited is dedicated to the sustainable development of society through its innovative recycling solutions. The company aims to provide high-quality, eco-friendly products while maintaining a commitment to operational excellence and enhancing customer satisfaction.

The mission statement of Gravita India Limited highlights several key aspects:

• Commitment to sustainable practices.
• Focus on innovation in the recycling process.
• Provision of high-quality lead and other products derived from recycled materials.
• Enhancing community standards through responsible corporate citizenship.

Gravita India operates with the vision of becoming a leading global player in the recycling industry. Its commitment to sustainability is evident in its operations, which emphasize waste reduction and resource recovery.

As of the financial year ending March 2023, Gravita India Limited reported revenues of ₹1,003.6 million, showcasing a year-on-year growth of 16% from the previous fiscal year. The net profit for the same year stood at ₹91.2 million, reflecting a profit margin of 9.1%.

Gravita India Limited upholds its principles through various initiatives aimed at reducing environmental impact while ensuring compliance with international standards. The company actively engages in community programs, enhancing its position as a responsible entity in the recycling sector.

Moreover, the company emphasizes innovation, developing new processes and technologies to enhance efficiency. In FY 2023, Gravita invested approximately ₹50 million in R&D activities to improve recycling techniques and product quality.

With a current market capitalization of approximately ₹4.5 billion, Gravita India has positioned itself as a leader in the recycling market, attracting investments due to its robust growth trajectory and commitment to sustainability.

The values embedded in the mission statement foster a culture of responsibility and transparency, reinforcing Gravita India’s long-term vision to contribute positively to both the economy and the environment.

How Gravita India Limited Works

Gravita India Limited is a leading player in the recycling and manufacturing of lead and plastic products. The company operates with a focus on sustainability while addressing the growing needs for recycled materials across various industries. As of October 2023, Gravita has established itself in multiple segments including lead recycling, manufacturing of lead products, and providing services related to battery recycling.

For the fiscal year 2022-2023, Gravita India reported a total income of ₹1,138.87 crores, a significant increase from ₹1,004 crores in the previous year. The net profit for the same period stood at ₹63.55 crores, compared to ₹55.10 crores in FY 2021-2022, resulting in a growth rate of approximately 15%.

The company operates multiple facilities across India and internationally, with a total recycling capacity of over 1,50,000 metric tonnes per annum for lead. This capacity is primarily driven by the demand for lead in various applications, including batteries and other industrial products.

Gravita’s business model is structured around three primary segments:

• Lead Recycling
• Manufacturing of Lead Products
• Battery Recycling and related services

The key operational metrics as of October 2023 are as follows:

Gravita's focus on sustainability is evident in its initiatives to reduce environmental impact. For instance, the company has invested over ₹50 crores in green technologies aimed at improving the efficiency of its recycling process. This includes advanced smelting technologies and methodologies that minimize emissions.

On a geographical scale, Gravita operates in several countries, including:

• India
• Tanzania
• Nepal

Globally, Gravita has a market presence that enhances its procurement of raw materials. The company relies on a network of suppliers and partners to source spent lead-acid batteries, which are vital for its recycling operations.

Gravita's financial health is indicated by key ratios as of Q2 2023:

In addition, Gravita's strategic initiatives include expanding its production capabilities and enhancing operational efficiencies. The company plans to increase its recycling capacity by an additional 15,000 metric tonnes by FY 2024.

Looking ahead, Gravita is poised to capitalize on the growing demand for recycled materials and the increasing focus on sustainability within industries such as automotive and electronics. This strategic positioning, combined with robust financial performance, sets the stage for continued growth and development as a leader in the recycling sector.

How Gravita India Limited Makes Money

Gravita India Limited operates primarily in the recycling industry, focusing on lead and plastic recycling. The company generates revenue through various segments, including metal recycling and the manufacturing of lead products, among others.

Revenue Breakdown

In the fiscal year 2022-2023, Gravita reported a total revenue of ₹1,041.30 crore, which marked a growth of approximately 18.3% compared to the previous year. The revenue contributions from different segments were as follows:

Lead Recycling Operations

The core of Gravita’s business model lies in lead recycling. The company processes around 1,40,000 metric tons of lead waste annually. The lead production capacity has reached approximately 60,000 MT per year. The selling price for lead in the domestic market ranged from ₹150,000 to ₹160,000 per MT in 2023, contributing significantly to the company’s revenue.

Plastic Recycling Initiatives

Gravita has also invested in plastic recycling, handling around 20,000 metric tons of plastic waste yearly. The average selling price for recycled plastic products is approximately ₹90,000 per MT. In 2022-2023, this segment contributed around ₹154 crore to the overall revenue.

Cost Structure and Profitability

The company’s cost of goods sold (COGS) as a percentage of revenue was approximately 82% in 2022-2023. The operating profit margin has improved to around 12%, reflecting efficient management of operational costs and increasing market demand.

Market Trends and Future Prospects

The demand for lead is expected to grow, driven by the surge in the battery manufacturing industry. The global lead-acid battery market size was valued at USD 33.96 billion in 2023 and is projected to grow at a CAGR of 5.5% from 2024 to 2030. This growth presents significant opportunities for Gravita, especially in expanding its lead recycling capabilities.

Financial Health

As of September 2023, Gravita India Limited reported total assets of approximately ₹1,200 crore with a debt-equity ratio of 0.67, indicating a manageable level of debt in relation to equity. The company’s return on equity (ROE) stands at 15%, showcasing effective utilization of shareholders’ equity.

Conclusion of Financial Metrics

Gravita India's diversified revenue streams and focus on sustainable practices position it well within the recycling market. With an emphasis on lead and plastic recycling, the company continues to explore growth avenues that align with global sustainability goals.