Nahar Poly Films Limited has informed the Exchange about Capacity addition
NAHARPOLY · price
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Nahar Poly Films' board has approved adding a third BOPP film line with an annual production capacity of 36,000 MT, requiring a capital outlay of around Rs 450 crores. This represents a 60% increase over its existing capacity of 60,000 MT per annum, which is currently running at full utilization. The expansion will be financed through a mix of bank term loans and internal accruals and is expected to be completed in 2-3 years. The company cited rising demand from e-commerce, food and beverages, and the broader packaged goods sector as the key driver, along with the goal of achieving economies of scale.
The expansion signals management's confidence in sustained demand growth, but the large debt-funded capex may increase leverage and put some pressure on near-term cash flows. Shareholders should view this as a long-term growth investment, with benefits expected to flow only after the 2-3 year commissioning timeline.