Gravita India Forges Major Entry into Copper Recycling with RMIL Acquisition
In a strategic move to diversify its portfolio, recycling major Gravita India Ltd has signed a binding term sheet to acquire up to 100% stake in Rashtriya Metal Industries Ltd (RMIL). The acquisition, valued at a consideration of up to ₹565 crore, marks Gravita's formal entry into the copper recycling and processing sector, according to official exchange filings by the company.
Strategic Expansion and Valuation Details
The proposed acquisition is subject to standard due diligence and customary regulatory approvals. Industry executives familiar with the transaction, who requested anonymity, revealed that the deal values RMIL at an enterprise value of approximately ₹800 crore. This acquisition represents a significant step for Gravita as it seeks to broaden its operational footprint beyond its existing core businesses in lead, plastic, rubber, and aluminium recycling.
By integrating RMIL's capabilities, Gravita aims to establish itself as a comprehensive, integrated recycling and value-added product manufacturer. This strategic diversification is expected to strengthen its competitive positioning and enhance overall margin quality, providing a more robust business model in the evolving global recycling landscape.
Profile of Rashtriya Metal Industries Ltd (RMIL)
Founded in 1946 and headquartered in Mumbai, RMIL is a well-established legacy player in the non-ferrous metals industry. The company specializes in manufacturing copper and copper alloy products, including strips and coils, which are critical components across multiple sectors:
- Electrical applications
- Automotive manufacturing
- Engineering industries
- Lock manufacturing
RMIL operates a manufacturing facility located in Gujarat with an installed annual capacity of around 24,000 tonnes. The company has a strong export orientation, deriving roughly 40% of its revenues from international markets, including the United States, the United Arab Emirates, Saudi Arabia, and Egypt.
Financial Performance and Growth Trajectory
RMIL has demonstrated impressive financial growth, reporting a turnover of ₹910 crore in FY25, a substantial increase from ₹688 crore in FY24. As of March 31, 2025, the company's net worth stood at ₹300 crore, with total assets valued at ₹558 crore. This robust financial profile underscores RMIL's stability and growth potential within the copper products market.
Copper's Critical Role in the Global Energy Transition
Gravita's entry into the copper segment comes at a pivotal moment, as copper demand is being significantly driven by the global energy transition. Key growth drivers include:
- Electric vehicle (EV) production and adoption
- Renewable energy infrastructure development
- Expansion of charging networks
- Decarbonization initiatives across major economies
Copper is increasingly recognized as a critical input metal for the future, essential for electrification and sustainable development. According to the India Copper Report 2026 by the Centre for Social and Economic Progress (August 2025), India's copper demand is projected to rise sharply. By FY30, traditional sectors such as construction, industry, and electricity are expected to consume approximately 3.24 million tonnes of copper, highlighting substantial market opportunities.
Gravita's Global Footprint and Market Position
Gravita India Ltd currently operates 13 manufacturing facilities worldwide and maintains a commercial presence in over 70 countries. The company has reported trailing 12-month revenues exceeding ₹4,100 crore, reflecting its established scale and operational expertise in the global recycling industry. The acquisition of RMIL is poised to further solidify Gravita's position as a diversified, integrated recycling powerhouse, capable of addressing growing demand for recycled copper products in an era focused on sustainability and circular economy principles.
