### **Overview** GRP Limited ("GRP") is an integrated polymer recycling company headquartered in Mumbai, India, founded in 1974. The company specializes in transforming end-of-life tyres (ELTs) and plastic waste into high-value, sustainable secondary materials, serving as a substitute for virgin rubber and plastics. With a strategic focus on innovation, circularity, and ESG-driven manufacturing, GRP operates across five core business verticals: **Reclaim Rubber, Engineering Plastics, Polymer Composite, Custom Die Forms, and Repurposed Polyolefins**. GRP is vertically integrating its operations into a full **ELT-to-Energy** and **plastic-to-materials** value chain, positioning itself as a trusted global partner in sustainable materials for mobility, packaging, construction, and infrastructure sectors. --- ### **Key Highlights (Jul–Aug 2025)** #### **1. Strategic Expansion & Vertical Integration** - GRP has operationalized its **Crumb Rubber facility in Solapur**, adjacent to its Reclaim Rubber plants, marking **Phase 1** of its ELT-to-Energy strategy. - The company is integrating a **full Crumb Rubber–Pyrolysis–Recovered Carbon Black (rCB)** value chain, with full commercial capability expected by **December 2025**. - Future phases include commercial production of **Tyre Pyrolysis Oil (TPO)** and **Recovered Carbon Black (rCB)**—both gaining strong traction in Europe and Asia-Pacific due to sustainability regulations and OEM adoption. - GRP is on track for a **threefold capacity expansion** across key verticals in **FY2025–26**, supported by **equity infusion** and a **€15 million debt facility** from **Proparco**, a French development finance institution. #### **2. Diversification Beyond Mobility** - While 70% of Reclaim Rubber and 80% of Polymer Composites are tied to mobility, GRP is actively expanding into **adjacent industrial and infrastructure markets**. - The company has entered the **crumb rubber-modified bitumen (CRMB)** market, supplying crumb rubber to **private and public sector road builders** for sustainable road surfacing. - CRMB applications leverage GRP’s crumb rubber output, reducing dependency on tyre OEMs and unlocking **50,000–55,000 tons/year** of addressable domestic market potential. - The company is also supplying crumb rubber for **playground turfs, matting, and tyre manufacturing**, achieving **100% utilization** of output from its Solapur plant. #### **3. Sustainability & Technology Leadership** - GRP launched a **next-generation reclaim rubber production line** with **lower greenhouse gas emissions**, already **approved by a global tyre OEM** and being scaled across both tyre and non-tyre applications. - All **heating systems in Reclaim Rubber plants** have transitioned to **biofuels from agricultural waste**, significantly **reducing carbon emissions and operating costs**. - The company is investing in **automation, machine learning, and SAP S/4HANA** to enhance efficiency, traceability, and predictive maintenance. - Engineering Plastics now incorporates **ocean plastics (e.g., fishnets)** and **textile waste** into its feedstock, enabling compliance with **EU green procurement standards** and access to regulated markets. #### **4. Subsidiary Growth: GRP Circular Solutions Ltd (GCSL)** - GCSL, GRP’s wholly owned subsidiary for **Repurposed Polyolefins**, has **entered commercial operations** with **6,000 MTA capacity**. - The business recycles **rigid end-of-life polyolefin waste (PP/PE)** into raw materials for **paint pails, lubricant containers, battery covers, and pallets**. - GCSL has secured approvals from **Asian Paints, Mobil, Castrol, Pidilite, and Bisleri**, though demand is still ramping up pending full enforcement of **India’s EPR regulations** (effective April 2025). - Challenges include **polypropylene (PP) sourcing**, as PP is scarce in municipal waste. GRP has mitigated this via a **PIR sourcing agreement with a major brand owner**. #### **5. Market & Regulatory Developments** - **EPR regulations** in India are driving long-term demand for recycled plastics, with GRP positioned as a pioneer in compliant recycling. - **Export dynamics for reclaim rubber** have weakened due to **U.S. import tariffs**, reducing demand from Thailand, Mexico, and Indonesia—historical hubs for Indian exports. - **Global rCB standardization** is accelerating, improving OEM acceptance. Non-tyre applications (e.g., conveyor belts, automotive parts) are adopting rCB, opening new markets. - In Europe, **TPO is being used as feedstock by virgin carbon black producers**, validating GRP’s pyrolysis strategy. #### **6. Supply Chain & Raw Material Challenges** - **Automotive inner tubes**—a key raw material for butyl reclaim—have become **scarce globally**, due to new reclaim capacity in **Pakistan and Egypt consuming local supplies**. - Despite India being the **world’s largest producer of butyl reclaim**, local supply chains face **cost pressures and margin compression**, limiting GRP’s ability to pass on price increases. - The company is **diversifying feedstock sources**, including **tread peelings, natural rubber scraps, and international ELT imports**. #### **7. Operational & Financial Developments** - **Total recycling capacity** exceeds **122,000 metric tons per annum** across **6 manufacturing units** in India. - Reclaim Rubber volumes grew **8% year-on-year** in FY25, despite global OE market headwinds. - **Engineering Plastics** reached **>70% utilization** and is nearing **85% threshold**, after which **capacity expansion plans will be triggered**. - The **Polymer Composite and Custom Die Forms** businesses serve **>90% of output to the U.S.**, but demand softened in 2025 due to **economic and geopolitical headwinds**. The company is developing new applications and focusing on **cost control**. --- ### **Core Businesses & Market Position** | **Business Vertical** | **Key Focus** | **Applications** | **Capacity (MTA)** | |------------------------|---------------|------------------|--------------------| | **Reclaim Rubber** | Butyl/natural rubber recovery from ELTs | Tyre treads, inner liners, retreads, mats | 70% of global tyre cos. use GRP | | **Engineering Plastics** | PA6, PA66, PBT from tyre cord & waste textiles | Automotive, electrical, furniture | 6,000 | | **Polymer Composite** | Rubber-plastic composites | Transport flooring, marine, logistics | 1,500 | | **Custom Die Forms (CDF)** | Design-based products from ELTs | Door mats, dock bumpers, agri equipment | 1,400 | | **Repurposed Polyolefins (GCSL)** | Recycled PP/PE for rigid packaging | Paint/lube pails, pallets | 6,000 | - **Supply Chain:** Sourcing network spans **150+ Indian cities** and **55+ countries**. - **Customer Base:** **400+ global customers**, including **8 of top 10 global tyre manufacturers**. - **Export Markets:** Over **60 countries**, with major U.S., EU, and ASEAN presence. - **Market Share:** 16% in Indian reclaim rubber; 35% of India’s exports. - **Certifications:** IATF 16949, ISO 9001, ISO 14001, ISO 45001, REACH-compliant. --- ### **Management & Governance** - **Rajen Doshi** – President & COO (ex-GE, Honeywell, Citi) - **Hemant Kaul** – President (Marketing) & CEO, Marangoni GRP (Tyre industry veteran) - **Ganesh Ghangurde** – Chief Compliance Officer The company also owns **Marangoni GRP Pvt. Ltd. (MGPL)**, a 50:50 JV with Italian retreading leader **Marangoni SpA**, offering **RINGTREAD** technology—gaining strong adoption in India’s commercial vehicle sector. ---