Gravita Netherlands BV, a step-down subsidiary of the company, has signed a Memorandum of Understanding (MoU) to acquire a waste tyre recycling facility located in Romania. This facility, currently owned by a Romanian-based entity, has a recycling capacity of approximately 17,000 metric tons per annum (MTPA). The acquisition marks an important milestone for Gravita, as it will be the company’s inaugural recycling operation within the European region.
The proposed acquisition will be executed through the creation of a new Special Purpose Vehicle (SPV) in Romania. Gravita Netherlands BV will hold a significant stake, maintaining 80% equity ownership, while also retaining full management control of the SPV. The remaining 20% equity interest will be allocated to other Romanian partners involved in the project.
According to the company’s filing, this structured partnership will enable Gravita to collaborate effectively with local stakeholders, ensuring a smooth transition and integration into the European market. The overall investment for this acquisition is estimated to be around ₹40 crore, of which Gravita Netherlands BV will contribute approximately ₹32 crore towards its equity share.
This financial commitment will be made contingent upon the completion of thorough financial, environmental, and legal due diligence. The due diligence process is crucial to ensuring that all necessary assessments regarding profitability, sustainability, and compliance with regulatory frameworks are conducted to mitigate potential risks and ensure a successful acquisition.
This strategic investment in Romania aligns with Gravita’s broader vision of expanding and diversifying its recycling operations into new geographies. The company is already experienced in managing similar rubber recycling facilities across multiple African nations, including Senegal, Togo, Ghana, and Tanzania. By replicating its proven business model in new regions, Gravita aims to leverage its expertise to create a broader global footprint.
Moreover, this acquisition is part of Gravita Netherlands BV’s larger strategy to capitalize on the growing opportunities within the European market. By expanding its waste tyre recycling operations into Europe, the company intends to tap into new customer bases, strengthen its market presence, and enhance its competitive position in the recycling industry. Gravita aims to establish strategic partnerships within Europe that will not only support its expansion efforts but also foster long-term growth.
Through this acquisition, Gravita hopes to enhance its European operations by building on its reputation for sustainable recycling practices. The new Romanian facility is expected to become a vital part of Gravita’s global network, contributing to the company’s long-term goal of becoming a leading player in the international recycling industry. The company remains committed to its mission of environmental sustainability while driving forward its global expansion and business growth initiatives.
Gravita India is a global leader in recycling and renewable resources, specializing in recycling lead, aluminum, plastics, and rubber. Established in 1992, the company operates across multiple countries, focusing on sustainability and environmental conservation. With a strong presence in both domestic and international markets, Gravita aims to deliver eco-friendly solutions while driving global recycling initiatives.
