Gravita India Limited, a leading “Recycling Company,” informed exchanges that a step-down subsidiary of Gravita Netherlands BV (hereinafter “GNBV”) has entered into a Memorandum of Understanding (MOU) to acquire a Waste Tyre Recycling plant in Romania from an existing entity based in Romania, with a capacity of approximately 17,000 MTPA. This will be Gravitas’ first recycling facility in Europe.
The acquisition will be accomplished by forming a separate SPV in Romania, in which GNBV will own 80% of the equity with management control, and the rest of the equity will be held by other partners based in Romania.
Furthermore, the overall investment in this transaction will be around Rs. 40 crores, with GNBV investing approximately Rs. 32 crores towards its contribution subject to in depth Financial. Environmental and Legal Due Diligence.
To boost growth, GNBV also plans to extend its recycling business operations across the European market. To do this, it will capitalize on new market opportunities and form strategic partnerships.
