Synopsis: Lead Reclaim invests Rs 20-25 Cr in Mundra plant for 1,500 MT/mo TPO & RCB, targeting SAF/marine green fuels amid 5% blending goals by 2030. Stock dips 2.5%. Ready for recycling’s next leap
Gujarat-based rubber maker bets big on sustainable aviation and marine fuel market. The Ahmedabad-based company is stepping into tyre pyrolysis oil production. This marks a significant shift for the recycled rubber manufacturer. The company plans to set up a new plant at Mundra, Gujarat, subject to necessary approvals.
Lead Reclaim and Rubber Products shares fell nearly 2.5%, trading at Rs 70.1 on April 9. Investors welcomed the announcement. Furthermore, the stock over the past year has given a return of 38.8 percent.
LRRPL will produce two key outputs at the Mundra facility. These are Tyre Pyrolysis Oil (TPO) and Recovered Carbon Black (RCB). The company plans to invest Rs 20–25 crore in total. The target production capacity is 1,500 MT per month across both products.
It has manufactured reclaim rubber since 2012. Now, however, it is entering an entirely new segment. The company sees this as a natural next step in the recycling value chain.
Aviation fuel today runs entirely on natural resources. TPO offers a cheaper and more sustainable alternative. It also helps companies meet recycling and Extended Producer Responsibility (EPR) norms. Therefore, demand for TPO is growing fast.
The Indian government has set clear SAF blending targets. It wants 1% SAF blending by 2027, rising to 2% by 2028. By 2030, the target reaches 5% for international flights. Globally, SAF demand could hit 183 million tonnes by 2040.
India is one of the fastest-growing aviation markets in the world. Additionally, the country has strong feedstock availability. This gives Indian producers a real edge in the SAF supply chain.
LRRPL says its TPO will meet required technical standards. The company will pursue the necessary certifications and industry partnerships. It aims to integrate smoothly into the green fuel value chain. A firm timeline for full operations will be shared soon.
Marine fuel is another opportunity on the horizon. Pyrolysis oil blending targets for marine use are also rising. As a result, LRRPL’s new facility could serve multiple high-value sectors simultaneously.
The company has built its reputation on recycled rubber products. Its core offerings include tyre reclaim rubber, butyl reclaim rubber granules, and crumb rubber powder. All products come from recycled scrap rubber. This background gives LRRPL a strong foundation for its next chapter.
With over a decade of manufacturing experience, LRRPL is now positioning itself at the intersection of recycling and clean energy. The tyre pyrolysis move is ambitious but it is grounded in real market need.
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