GPIL ventures into recycling of non-ferrous metals with Jammu Pigments acquisition

Godawari Power & Ispat Limited (GPIL), a leader in the iron and steel industry, has announced its entry into the non-ferrous metals recycling sector through the acquisition of a 51% stake in Jammu Pigments Limited (JPL). The transaction, valued at approximately ₹500 crores, represents a strategic diversification for GPIL, aligning with its environmental and sustainability goals.

The deal is structured in two tranches, beginning with GPIL injecting ₹175 crores into JPL for debt repayment and growth capital, alongside purchasing shares worth ₹79.52 crores from JPL’s existing promoters. A second tranche will see GPIL acquiring an additional 2% stake for ₹10 crores. Upon completion, JPL will operate as a subsidiary of GPIL, with the latter holding a majority on its board.

JPL specialises in recycling lead-acid batteries and other secondary lead waste, processing hazardous industrial by-products to extract valuable metals such as lead, tin, zinc, copper, and cadmium. Its state-of-the-art facilities in Jammu & Kashmir and Rajasthan enable efficient recovery of trace metals, offering cost-effective solutions in this capital-intensive sector.

JPL’s financial performance underscores its growth potential, with revenue climbing from ₹825.7 crores in FY22 to ₹1,173.78 crores in FY24. Its unaudited results for the first half of FY25 already show a revenue of ₹563.92 crores.

GPIL’s Managing Director, Mr B. L. Agrawal, highlighted the strategic importance of this acquisition, stating it enhances GPIL’s commitment to environmental sustainability while mitigating risks and unlocking new market opportunities. He added that the move would provide significant value to stakeholders and align with GPIL’s portfolio diversification strategy.

JPL’s Managing Director, Mr Ramesh Agrawal, expressed confidence in the partnership, emphasising GPIL’s technical expertise and strategic insights as pivotal in driving JPL towards a higher growth trajectory.

This acquisition is a departure from GPIL’s previously announced plans to acquire RG Pigments Pvt Ltd, a decision now rescinded. GPIL’s focus on JPL reflects its strategic prioritisation of long-term value creation in the non-ferrous metals sector.

This move not only diversifies GPIL’s business model but also enhances its portfolio with a low-capex entry into an essential industry, showcasing its agility in navigating market opportunities.