Intimation under Regulation 30 of SEBI (LODR) Regulations, 2015-Capacity Addition
Awaiting price reaction for this filing.
The Board has approved a capacity addition at the company's Mandideep plant in Madhya Pradesh. Existing kiln loading capacity of 20,640 MT will be raised by 9,900 MT (around 48% increase) and dispatchable capacity will go up by 7,900 MT from the current 16,500 MT. The plant is currently running at 100% utilisation, indicating strong demand. Total investment required is Rs. 94 crore, to be funded through fixed deposits and mutual funds, with completion targeted by June 2026. The company expects a monthly benefit of approximately Rs. 2.77 crore once the expanded capacity is operational.
This brownfield expansion is positive for shareholders as the plant is already operating at full capacity, suggesting strong demand and potential for higher revenues post-expansion. However, investors should note the capex is being funded from internal investments (FDs and mutual funds) rather than internal accruals or debt, which may have implications for treasury returns.