N R Agarwal Industries Limited has informed the Exchange that pursuant to Regulation 30 read with Schedule III and other applicable provisions of the SEBI Listing Regulations, we hereby inform you that it is proposed to set up a new Multilayer Board plant with an estimated installing capacity of 1000 tonnes per day (TPD) (hereinafter referred to as Unit VI project ) with a tentative investment of Rs. 1200 Crores.
NRAIL · price
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Awaiting price reaction for this filing.
N R Agarwal Industries has announced plans to set up a new Multilayer Board plant called Unit VI with an estimated capacity of 1,000 tonnes per day, requiring an investment of around Rs. 1,200 Crores to be completed in about 4 years. The company is also buying a 2013-make 4.3 meter deckle board paper machine (1,020 TPD) from China and is in the process of acquiring land for the project. Separately, the company is permanently closing its Unit IV Duplex Board Plant, which has been idle since July 2024 and contributed only 2.89% of turnover (about Rs. 47.95 Crores) in the last financial year, due to non-viable operations. The company's existing capacity of 4,44,000 MT per annum was utilized at about 87% in FY25, indicating healthy demand.
This is a large growth-oriented capex announcement that could significantly expand future revenue, but the Rs. 1,200 Crore funding mode is not yet decided, which may dilute equity or increase debt. The closure of Unit IV is minor since it contributed under 3% of sales and was already shut. Near-term stock reaction is likely neutral to mildly positive, with investors watching for clarity on financing.