On Thursday, Gravita India Ltd.'s stock increased by 3% after the company's announcement that its subsidiary had started up at the Tanzanian plastic recycling factory.

According to a filing to the stock exchanges, the recycling company, which has manufacturing centers across the world, has begun the commercial production of Recycled Polypropylene Granules at its new plastic recycling facility in Tanzania, East Africa. This facility is run by its step-down subsidiary.

The plastic recycling factory listed above is capable of handling almost 1,800 million tons of plastic annually (MTPA). The new recycling plant was purchased and put into operation by the company at an investment of around ₹2.25 crore. According to Gravita India, the company's internal revenues were used to fund this transaction.

Similar plastic recycling plants have been set up across Africa in Ghana, Senegal and Mozambique, according to the main recycling giant.

Gravita India will supply local plastic scrap to the new plant in Tanzania so that it may produce commodities that will meet the demands of the plastic manufacturing sectors in Europe and Asia.

According to an official release from Gravita dated December 7, the plant will aid the company in modifying its sales mix by increasing the contribution from the plastic business.

According to information released by Gravita India, the firm plans to continue on its current growth trajectory. By FY25, it hopes to raise volumes by 25% and boost EBITDA (earnings before interest, tax, depreciation, and amortization) margins to a maximum of 12%.

On the BSE, Gravita India's shares were up 2.35% at ₹1,088.65 a share.