Mumbai, Feb. 9 -- Recycling company Gravita India Ltd has signed a binding term sheet to acquire up to 100% stake in Rashtriya Metal Industries Ltd (RMIL), manufacturers of copper and copper alloy products, for a consideration of up to Rs.565 crore, marking its entry into the copper recycling and processing business, according to the company's exchange filings.

The acquisition, subject to due diligence and customary approvals, values RMIL at an enterprise value of about Rs.800 crore, two executives familiar with the matter said, requesting anonymity.

The acquisition of RMIL would enable Gravita to diversify into copper and copper alloy products, including recycling from copper scrap to copper alloys, alongside its existing lead, plastic...