Plastic recycler Ganesha Ecosphere is eyeing revenues of around ₹1,700-1,900 crore for the fiscal year 2025.

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Yash Sharma, the company's Director, is confident that the aggressive expansion in the bottle-to-bottle capacities will help them achieve a compound annual growth rate (CAGR) of around 20-22% over the next 3-4 years.

Bottle-to-bottle refers to a recycling process where used plastic bottles are collected, processed, and then remade into new plastic bottles.

While the margin in traditional businesses is about 10-12%, it is much higher, at over 20%, in the bottle-to-bottle project, Sharma noted.

On November 24, the Ganesha Ecosphere board approved multiple proposals including raising funds up to ₹350 crore via Qualified Institutions Placement (QIP). This will be done by issuing equity shares having a face value of ₹10 per piece.

Sharma said the funds will also be directed at increasing the bottle-to-bottle product portfolio.

Ganesha Ecosphere’s board also approved the preferential issue of warrants that will be converted into equivalent equity shares of the company having a face value of ₹10 each to one of the members of the promoter group, GPL Finance.

The total number of securities proposed to be issued shall range to not more than ₹150 crore, with each warrant convertible within 18 months from the allotment date.

The Kanpur-based company has a market capitalisation of ₹2,178 crore and it competes with industry rivals such as ResGen and Ricron Panels.

Shares of the company were up around 1% on the NSE on November 29 at ₹1,003 apiece. The stock has gained over 10% in a month versus Nifty 50 gains of over 5%.

(Edited by : Shweta Mungre)