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ED of lead products manufacturer Gravita India, Navin Prakash Sharma, predicts greater contribution to growth from lithium ion batteries and steel starting 2027.
“There will be other recycling projects which we are planning, which includes steel, paper and lithium batteries. We foresee those numbers only after 2027,” according to his statement.
He anticipates 25% compounded annual growth rate (CAGR) volume to continue for 3-4 years. The return on capital employed (RoCE) is expected to be around 25% and EBITDA per tonne at around ₹16-18 per kilogram.
Policy changes like goods and services tax (GST) and regulations on battery waste management rules are likely to improve the share of formal business from 60% now, he said.
Within the formal sector, Gravita India’s share stands at around 15-18% as of now. Value-added products (VAP) has been the focus area for the company and it has been moving towards the 50% mark.
“We will be shifting more VAP in every segment, so we expect it to increase at least 60% in next year,” he said. Gravita India’s current debt stands at around ₹450 crore and the company has a capex plan of around ₹600-700 crore in next four years.
“This capex should generate a revenue of 8-9X,” he said. Capex will be funded through internal accruals and there is no plans to raise equity, he added.
In terms of exports, he mentioned, “We are present in Africa. We are working on some projects in Middle East and in South American markets. We are working on those geographies. Next growth should come from that area.”
The current market capitalisation of the company is ₹8,765 crore.
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