Gravita India Limited announced the approval of a binding term sheet to acquire up to 100% stake in Rashtriya Metal Industries Limited (RMIL), a copper and alloy product manufacturer established in 1946. The total consideration is capped at INR 565 crores, subject to due diligence. This strategic move aims to bolster Gravita’s existing business by integrating RMIL’s manufacturing capabilities, positioning the target company to become a subsidiary.
Strategic Acquisition to Expand Copper Capabilities
Gravita India Limited has entered into a binding term sheet for the acquisition of up to 100% equity stake in Rashtriya Metal Industries Limited (RMIL). The maximum consideration agreed upon for this acquisition is up to INR 565 crores, which is subject to the completion of due diligence and other agreed-upon terms. The Board approved this significant development during its meeting held on February 09, 2026.
Target Entity Profile: Rashtriya Metal Industries Limited
RMIL is highlighted as one of India’s oldest and most reputed manufacturers, specializing in copper & copper alloy products, including strips and coils, with established export markets across the UAE, USA, Thailand, Sri Lanka, Oman, Saudi Arabia, Kenya, and Indonesia.
Key financial data for RMIL as of March 31, 2025, indicates a Net Worth of ₹300 crores, a Turnover of ₹910 crores, and Total Assets valued at ₹558 crores. The company was incorporated on November 28, 1946, and its operations fall within the manufacturing sector for these metallic products.
Financial History of RMIL (Turnover in Crores)
- FY 24-25: ₹910
- FY 23-24: ₹688
- FY 22-23: ₹598
Deal Rationale and Next Steps
The acquisition is framed as a strategic initiative intended to expand Gravita’s presence and significantly strengthen its overall capabilities, particularly in the copper recycling and related products domain. The Company also noted its entry into the broader business of copper recycling, suggesting this acquisition aligns with future operational expansion.
The transaction is confirmed not to be a related party transaction, with no promoter or group company interest in the target entity. The indicative time period for the completion of the acquisition is set for March 31, 2026, or another mutually agreed date. The consideration will be paid in cash.
The Board Meeting commenced at 02:30 P.M. and concluded at 05:30 P.M. on the day of announcement.
Source: BSE
