Lead Reclaim and Rubber Products Ltd. (**LRRPL**) is an Ahmedabad-based specialized manufacturer and recycler of high-performance reclaimed rubber. The company operates at the intersection of industrial manufacturing and environmental sustainability, transforming scrap rubber—including **radial tyres, nylon tyres, natural tubes, and butyl inner tubes**—into high-value raw materials. With a strategic focus on the circular economy, **LRRPL** serves the automotive, construction, and consumer goods industries both domestically and internationally. --- ### **Core Product Portfolio & Industrial Applications** LRRPL maintains a diversified range of grades and thicknesses, ensuring every batch meets stringent standards for **tensile strength, resilience, and porosity** through an **in-house testing laboratory**. | Product Category | Key Grades | Key Value Proposition | Typical Applications | | :--- | :--- | :--- | :--- | | **Whole Tyre Reclaim (WTR)** | LEAD WTRHT, WTRHR, WTRSF | High tensile strength; **low thermo plasticity**. | New tyres, conveyor belts, footwear, and gaskets. | | **Butyl Tube Reclaim (BTR)** | LEAD BTR, BTRHT | **Low porosity**; gas impermeability; chemical resistance. | Tyre inner liners, inner tubes, and automotive seals. | | **Natural Tube Reclaim (NR)** | LEAD NR, NRHT | High plasticity; enhanced heat resistance. | Tyre retreading, footwear soles, and industrial hoses. | | **Crumb Rubber Powder** | Rubber Granules | Eco-friendly; offers up to **85% cost reduction**. | Roads, sports surfaces, and rubberized asphalt. | **Key Manufacturing Advantages:** * **Devulcanization Process:** Reverses the vulcanization of scrap rubber to regain plasticity for reuse. * **Operational Benefits:** Products offer **reduced power consumption**, **shorter mixing times**, and **lower heat buildup** compared to virgin rubber. * **Sustainability Impact:** Significant **carbon reduction** and waste diversion from landfills. --- ### **Operational Infrastructure & Capacity Expansion** The company operates a centralized manufacturing facility in **Kheda, Gujarat**, and is currently undergoing a massive scaling phase to meet rising global demand. * **Current Capacity:** Total production capacity stands at **11,400 MT+** per annum, following **GPCB approval** in **July 2024** to scale from an initial **5,520 MT**. * **Capacity Utilization:** Currently operating at approximately **85%**. * **Land Assets:** The primary plant occupies **7,790 Sq. mts.** Recent acquisitions include **1,355.54 Sq. Mtr.** and **12,141 Sq. Mtrs.** in **Someshwari** and **Bordi** to facilitate future growth. * **Certifications:** **ISO 9001:2015**, **MSME Zed Certified**, **RoHS Compliant**, and **REACH SVHC Compliant**. --- ### **Strategic Pivot: High-Margin Verticals & Green Energy** LRRPL is transitioning from a traditional reclaimer to a diversified sustainable materials company. A **₹35.58 crore** investment from a **2026 preferential issue** is being deployed into four new margin-accretive verticals: | Product Vertical | Proposed Capacity (p.a.) | Strategic Value Proposition | | :--- | :--- | :--- | | **Tyre Pyrolysis Oil (TPO)** | **18,000 MT** | **10–20%** cost savings vs furnace oil; SAF/Marine fuel potential. | | **Recovered Carbon Black (RCB)** | **18,000 MT** | **40–60%** cost advantage over virgin carbon black. | | **Recycled EPDM Rubber** | **10,800 MT** | **70%** cost savings for automotive/construction segments. | | **Crumb Rubber Powder** | **9,600 MT** | Expansion of existing recycling capabilities at Kathlal. | **Efficiency Initiatives:** * **Energy Independence:** Installing a **1.25 MW solar power plant** for captive consumption, projected to slash electricity costs by **85%**. * **Automation:** Introduction of automated machinery to reduce manpower costs and enhance quality consistency. * **Future CAPEX:** Planning for **Electronic Waste Recycling** and **Solar Panel Recycling** plants. --- ### **Financial Performance & Capital Structure** LRRPL has demonstrated aggressive revenue growth, with a clear strategy to improve net margins through value-added products. | Particulars (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Total Revenue** | **3,126** | **1,488** | **895** | | **Profit Before Tax (PBT)** | **200** | **75** | **69** | | **Profit After Tax (PAT)** | **146** | **37** | **83** | | **Net Worth** | **2,008** | **1,118** | **1,082** | **Monetizing Environmental Compliance (EPR):** A significant secondary revenue stream is the sale of **Extended Producer Responsibility (EPR)** credits. In FY 24-25, LRRPL generated **₹211.04 Lacs** from the sale of **9,015.23 MT** of EPR credits, more than doubling the **₹94.27 Lacs** earned the previous year. **Capital Infusion (April 2026):** * **Preferential Issue:** Approved up to **₹45 Crore**. * **Promoter Commitment:** **50%** promoter participation in **₹26.26 Crore** of convertible warrants. * **Equity Issuance:** **₹9.33 Crore** in equity shares to non-promoters at **₹75 per share**. --- ### **Market Reach & Strategic Partnerships** * **Export Dominance:** Approximately **75%** of production is exported. Key markets include **Sri Lanka, Argentina, Turkey, and China**. * **Global Validation:** Secured **"Approved Vendor"** status with a leading global tyre manufacturer. * **Associate Companies:** Holds a **50% stake** in **Regrip Lead Recycling Private Limited**, strengthening its position in the circular economy. * **Green Fuel Pivot:** Positioning to meet government mandates for **Sustainable Aviation Fuel (SAF)**, targeting **1%** blending by **2027** and **5%** by **2030**. --- ### **Risk Matrix & Mitigation** The company’s performance is subject to regulatory shifts and commodity cycles. * **Regulatory Mandates:** Under **MoEFCC EPR norms**, tyre manufacturers must meet **100% recycling targets** by **2025**. While this drives demand for LRRPL’s services, any change in these mandates could impact EPR credit pricing. * **Raw Material Volatility:** Performance is linked to the price of **natural and synthetic rubber**. LRRPL mitigates this by initiating **tyre imports** to lower input costs. * **Industry Cyclicality:** High dependence on the **automobile and tyre sectors**. * **Operational Hazards:** Handling bulk scrap involves high **fire safety** risks and logistical challenges. * **Technological Barriers:** Tyre manufacturers demand extreme consistency; LRRPL addresses this through its **in-house QC lab** and recent **Radial tyre crumb plant** upgrades.