We attach herewith Discloser regarding Capacity addition.
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Him Teknoforge has revised its earlier plan and will now set up a new forging plant at Pithampur, Madhya Pradesh directly under the company instead of through its subsidiary HimForge Rings LLP, as the company now qualifies as an MSME. The project involves a capital expenditure of Rs. 51.75 crores, to be funded through a mix of internal accruals, debt, and equity. The plant will produce forged automotive parts for both domestic and international markets (Europe and USA), with a proposed capacity addition of 14,400 MT (of which 40% will replace existing capacity due to technology upgrade, implying a net addition of around 8,640 MT). The new capacity is expected to be completed by the first or second quarter of 2026. Current capacity stands at 9,300 MT with 70-75% utilization.
This is a growth-oriented capex announcement that will nearly double forging capacity and enable entry into European and US markets, which could boost long-term revenues. However, the mixed financing (including equity dilution risk) and the fact that 40% of the new capacity replaces old capacity mean investors should weigh the net addition and timeline carefully.