Lead Reclaim Raises ₹35.58 Crore to Boost Expansion into Four Sustainable Verticals

Lead Reclaim Raises ₹35.58 Crore to Boost Expansion into Four Sustainable Verticals​

Lead Reclaim and Rubber Products Ltd (LRRPL), a leading manufacturer of reclaim rubber and rubber granules, has announced a preferential issue of ₹35.58 crore. The capital raise aims to accelerate the company's expansion into four new, margin-accretive, and sustainability-driven product verticals. The successful round saw strong participation from Public and Marquee Investors, with the Promoter segment accounting for 50% of the total capital.

The expansion strategy positions LRRPL at the intersection of the circular economy and cost-efficient industrial substitutes, capitalizing on strong regulatory tailwinds like Extended Producer Responsibility (EPR) and sustainability mandates.

Expanding Product Portfolio and Markets​

The company is strategically entering four segments designed to significantly diversify its product offering. These new verticals capitalize on industrial waste materials while providing cost advantages and meeting growing market demand:

Capacity and Infrastructure Development​

To support this rapid expansion into sustainable materials and green energy, LRRPL plans to set up multiple manufacturing facilities across Gujarat, establishing significant operational capacity:

• Dahej/Mundra, Gujarat: Two proposed facilities, both with an installed capacity of 18,000 MT per annum, will facilitate the production of Recovered Carbon Black and associated materials.
• Chhatral, Gujarat: One facility with an installed capacity of 10,800 MT per annum is proposed.
• Kathlal, Gujarat: A facility with an installed capacity of 9,600 MT per annum is proposed, and permission has already been received from the Gujarat Pollution Control Board.

Strategic Outlook​

Jayeshh Patel, Managing Director, commented on the development, stating that the capital is a pivotal milestone for the company’s growth. He highlighted that the funds are being deployed to launch high-potential verticals, unlocking value from waste while addressing large, growing industrial demand.

According to Mr. Patel, these segments offer a compelling blend of strong unit economics and scalability. This expansion is transitioning LRRPL from a traditional reclaim rubber manufacturer into a diversified sustainable materials and green energy company. The company notes that this shift enhances its role in enabling a circular economy through the supply of cost-efficient and environmentally responsible alternatives.

LRRPL Stock Price Movement​

Today, Lead Reclaim And Rubber Products Limited shares rallied 4.95% to close at ₹79.45. The stock saw a total trading volume of 48,000 shares during the day.