Gravita India Limited announced the approval of a binding term sheet to acquire up to 100% equity stake in Rashtriya Metal Industries Limited (RMIL), a key copper products manufacturer. The total consideration for the acquisition is capped at INR 565 crores. This strategic move aims to bolster Gravita’s capabilities in copper recycling and manufacturing, bringing an established entity with strong export ties under its subsidiary structure.
Strategic Acquisition Approved
The Board of Directors of Gravita India Limited, following its meeting on February 09, 2026, has approved entering into a binding term sheet for the acquisition of up to 100% of the equity share capital of Rashtriya Metal Industries Limited (RMIL). The maximum total consideration agreed upon is INR 565 crores, subject to the successful completion of due diligence and other agreed terms.
Target Entity Profile (RMIL)
Rashtriya Metal Industries Limited, established in 1946, is noted as one of India’s oldest and most reputed manufacturers of copper and copper alloy products (strips and coils). RMIL has significant export operations across the UAE, USA, Thailand, Sri Lanka, Oman, Saudi Arabia, Kenya, and Indonesia. Upon completion of the share acquisition, RMIL is set to become a subsidiary of Gravita India.
Key Financials of RMIL (as of March 31, 2025)
The annexure provided key financial figures for RMIL:
- Net Worth: ₹300 Crores
- Turnover: ₹910 Crores
- Total Assets: ₹558 Crores
RMIL’s turnover for the last three financial years shows consistent growth:
| Financial Year | Turnover (₹ in Crores) |
|---|---|
| FY 24-25 | 910 |
| FY 23-24 | 688 |
| FY 22-23 | 598 |
Business Rationale and Future Outlook
Gravita stated that the acquisition is a core part of the Company’s strategic initiative to expand its presence and strengthen its core capabilities. Furthermore, the Board approved the plan for entering into the business of copper recycling, indicating a parallel strategic expansion in this vertical.
The transaction is not considered a related party transaction, and no promoter groups hold any interest in RMIL. The indicative timeline for the completion of the acquisition is set for March 31, 2026, or another mutually agreed date. The consideration for the acquisition will be in the form of cash.
Source: BSE
