The general recycling market in India is predicted to succeed in $0.89 billion in 2025, rising at a CAGR of 8.53 % to succeed in $1.34 billion by 2030.
Within the 2025 finances, the Indian authorities eliminated customs duties on waste and scrap of twelve crucial minerals, together with lithium-ion battery waste. This coverage goals to make sure the supply of important supplies for home manufacturing, supporting the expansion of the recycling sector.
Right here’s a comparability between Gravita India and Pondy Oxides & Chemical compounds:
Worth Motion
Gravita India Restricted, with a market capitalization of Rs. 12,497.6 crores, reached an intraday excessive at Rs. 1,768.75 on BSE, up by round 4 % on Friday. The inventory has delivered constructive returns of almost 94 % over a one-year interval, whereas round 15 % of adverse returns within the final one month.
Pondy Oxides & Chemical compounds Restricted, with a market capitalization of Rs. 1,626 crores, hit an intraday excessive at Rs. 606.85, up by round 3.5 % on BSE. The inventory has delivered constructive returns of almost 62 % over a one-year interval, whereas round 23 % of adverse returns within the final one month.
Future Outlook
The administration of Gravita India stays optimistic about its progress prospects, aiming for a quantity CAGR of over 25 % and profitability progress of greater than 35 % beneath its Imaginative and prescient 2028 plan.
The corporate can also be specializing in growing the share of non-lead enterprise to over 30 %, whereas using greater than 30 % renewable power and lowering total power consumption by 10 %.
In distinction, POCL is concentrated on increasing its lead capability and exploring new verticals equivalent to lithium-ion battery recycling. The corporate targets over 15 % quantity progress, a income CAGR of greater than 20 %, and profitability progress, with a robust emphasis on sustainable practices.
POCL goals to realize an EBITDA margin exceeding 8 % and a ROCE above 20 %. Moreover, the corporate is concentrating on 60 % of its income to return from value-added merchandise and goals to cut back power consumption by 20 % by 2030.
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Monetary Efficiency
Gravita India reported a big progress in income from operations, experiencing a year-on-year improve of almost 31.4 %, rising from Rs. 758 crores in Q3 FY24 to Rs. 996 crores in Q3 FY25, whereas its internet revenue elevated round 28 % YoY from Rs. 61 crores to Rs. 78 crores.
Moreover, the income of Gravita elevated by a CAGR of over 30 % to Rs. 3,161 crores in FY24, as towards Rs. 1,410 crores in FY21, whereas the online revenue grew by a CAGR of 62 %, from Rs. 57 crores to Rs. 242 crores, over the identical interval.
Pondy Oxides reported a big progress in income from operations, experiencing a year-on-year improve of almost 11.4 %, rising from Rs. 457 crores in Q3 FY24 to Rs. 509 crores in Q3 FY25, whereas its internet revenue elevated round 30 % YoY from Rs. 10 crores to Rs. 13 crores.
Additional, the income of Pondy Oxides elevated by a CAGR of 15 % to Rs. 1,524 crores in FY24, as towards Rs. 1,004 crores in FY21, whereas the online revenue grew by a CAGR of almost 54 %, from Rs. 11 crores to Rs. 40 crores, over the identical interval.
Margin Steerage
For Gravita India, the anticipated EBITDA per ton for lead is projected to stabilize within the vary of Rs. 18 to Rs. 19, with aluminium margins anticipated to be between Rs. 14 to Rs. 15 as soon as hedging mechanisms are totally applied.
For POCL, the EBITDA per ton of lead has decreased by 24 % YoY, with administration citing the rise in home uncooked materials costs as a key issue affecting margins. The corporate expects to enhance its EBITDA margin to round 6 % within the close to time period, with a long-term objective of surpassing 8 % by FY30
Strategic Initiatives
Recyclers Ghana Restricted, a step-down subsidiary of Gravita in West Africa, has commenced business manufacturing of recycled aluminium alloys with an annual capability of 4,000 metric tons, with plans to broaden this capability to eight,000 metric tons. Gravita Netherlands BV, the corporate’s materials subsidiary, has elevated its stake in Navam Lanka Restricted from 52 % to one hundred pc.
Gravita India raised Rs. 1,000 crores by way of QIP, which shall be strategically utilized to assist the corporate’s progress initiatives. This consists of capability enlargement, and diversification into new verticals, with Rs. 245 crores allotted for debt compensation and dealing capital.
The pilot tasks for lithium-ion battery recycling and Gravita’s first-ever rubber recycling plant in Mundra are on monitor, with operational graduation anticipated in H1 FY26. The Mundra facility is predicted to provide ~72,000 tons of lead, with plans to broaden manufacturing to 1 lakh metric tons.
For POCL, the corporate is increasing its lead capability by 72,000 metric tons every year in two phases. Section 1, which incorporates 36,000 metric tons, is predicted to start trial manufacturing in March 2025.
The full estimated capex for Section 1 is Rs. 70 crores, funded by way of QIP and inside accruals, whereas Section 2 enlargement, with an estimated capex of Rs. 20 crores, is predicted to be commissioned by H2 FY26.
POCL additionally plans to arrange R&D services for value-added merchandise and is conducting feasibility research for lithium-ion battery recycling, with potential implementation in FY27.
In regards to the Firm
Gravita India Restricted is engaged in lead processing, aluminium processing, commerce (lead merchandise and aluminium scrap) and dealing in turn-key lead recycling tasks.
The corporate carries out smelting of lead battery scrap/lead focus to provide secondary lead steel, which is additional reworked into pure lead, particular lead alloy, lead oxides (lead sub-oxide, crimson lead, and litharge) and lead merchandise like lead sheets, lead powder, lead shot and many others.
Additional, the corporate has additionally entered into PET product manufacturing. Then again, POCL is likely one of the largest recyclers of non-ferrous metals and a number one producer of Lead and Lead alloys
The corporate is engaged within the enterprise of changing scraps of assorted types of lead, aluminium and copper into lead steel, aluminium steel, copper and its alloys. Lead battery scrap is smelted by POCL to provide secondary lead steel is then processed into pure lead and particular lead alloys.
Written by Shivani Singh
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