Multinational recycling company Gravita opened its new battery recycling unit at Mundra port in Gujarat on Monday, seeking to tap the growing opportunities arising from increased awareness on recycling, the company said in a statement to the stock exchange.

Phase 1 of the unit will have a 19,500 metric tonnes per annum (MTPA) plant equipped with modern facilities, including the latest technology and automated processes.

Gravita expects an increase in the share of higher-margin business from the key overseas market across the lead, aluminium and plastic recycling segment, the company said.

“Closer proximity to the port will increase efficiency of operations as import of scrap and export of finished goods will be carried out using the same port. This will result in optimisation of logistics cost coupled with a reduction in the working capital cycle of the company. Overall, the plant is well positioned to cater to the growing demand from the overseas market and with higher operational efficiency, it is expected to further enhance profitability,” it added.

Phase 1 of the unit was built with an investment of Rs 32 crore of which Rs 26 crore was funded through external borrowings and the remaining from internal accruals. The company said it plans to raise the capacity of the plant to 48,000 MTPA with an investment of Rs 30 crore.

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