Godawari Power and Ispat Limited (GPIL) has approved a strategic expansion plan that includes launching a new manufacturing unit for Opvc pipes and acquiring a majority stake in R.G. Pigments Private Limited (RGP), a non-ferrous metal recycling company.
The first proposal entails setting up a manufacturing unit for Opvc pipes, a cost-effective alternative to traditional ductile iron pipes with rising market demand. The new facility is projected to contribute Rs. 200 crore annually to GPIL’s top line when operating at full capacity. The project, estimated to cost Rs. 125 crore including working capital, aims to strengthen GPIL’s presence in the infrastructure and construction sectors. Additionally, the company plans to amend its Memorandum of Association to support this new line of business.
In a parallel move, GPIL will acquire a 60% equity stake in R.G. Pigments Private Limited for Rs. 56.75 crore. This acquisition aligns with GPIL’s goals of expanding into the recycling sector. RGP, based in Kota, Rajasthan, specializes in recycling non-ferrous metal industrial waste and has a current capacity of 7,500 metric tons per annum (MTPA), which it plans to expand to 32,500 MTPA. RGP’s revenue for FY 2023 stood at Rs. 46.7 crore.
The acquisition will be made through cash consideration, and the transaction is expected to be completed by March 31, 2025. GPIL’s investment in RGP will help the company diversify its business activities into environmentally sustainable metal recycling. GPIL’s entry into the non-ferrous metals sector aligns with global trends emphasizing circular economy practices in industrial operations.