India’s leading non-ferrous recycling company, Pondy Oxides and Chemicals Ltd., is on the expansion path. To support environmental sustainability by giving priority importance to recycling, the company recently announced its intention to build an aluminum recycling/melting facility.
Pondy Oxides is the largest secondary lead metal manufacturing company that recycles lead, copper, zinc, and plastic in various forms. Therefore, apart from Lead and Copper, the new facility will augment the company’s portfolio of other non-ferrous metals providing an opportunity to recycle Aluminum.
Incorporated in March 1995, the company has established its brand globally and is listed on the Bombay stock exchange (BSE).
Plan in Detail
The facility is likely to be set up at Pondy Oxide’s existing premises in Sriperumbudur, Tamil Nadu. The expansion project for the current year involves a total investment of Rs five crore on plant and machinery and pollution equipment.
Subsequently, the company has been permitted by Tamil Nadu Pollution Control Board to manufacture 14,750 million tons (MT) of Aluminum and Aluminum Alloys (Ingots/pellets/molten) annually.
Also, the implementation of all the related state-of-the-art machinery is under process. Interestingly, the company targets to install and commission production somewhere this December.
Our View
In the fast-developing world, the company reflects strong business momentum with the move towards newly defined verticals, financial stability, and operational efficiency. Despite global hues, Pondy Oxides has provided returns of more than 111% year-to-date. As a result, based on the company’s strong fundamentals and long-term growth prospects, investors might consider the stock as an attractive investment opportunity at the recent dip.