Gravita India has commenced commercial production of lead from its plant situated at Tanzania, East Africa. CEO Naveen Prakash Sharma said the company expects revenue of Rs 50 crore from the Tanzania lead unit from next year. “In future, we are coming up with aluminium and plastic as well,” he added.

“The current capacity of this plant, on revenue base, is Rs 50 crore but since we have started this plant in this financial year though we expect the production from this year will be around 2,500 tonne and later it can go up to 3,500 tonne,” he said.

“Plastic will be in the second phase. Aluminium will start from the month of May, so I will be able to share the numbers once the commercial production starts,” he further added.

On revenue and margins front, he said, “We will maintain revenue growth of 25-30 percent over FY19 and when it comes to margins, this year’s margin was a bit lower because we have done more volume from India market where we have lesser margin but now we are coming up with this plant at Tanzania and maybe next month we will start Ghana plant and more in other continents. So the total margin number will also improve.”

“We will get around 7-9 percent of EBITDA margin,” Sharma added. According to him, FY19 revenue will be lower than expectations.