R M Drip and Sprinklers Systems Limited has informed the Exchange about regarding proposed setup of new manufacturing unit
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The Board has approved setting up a new manufacturing unit under its subsidiary Brahmanand Pipes Private Limited in Sinnar, Nashik, Maharashtra. The facility will add approximately 12,000 metric tonnes per annum of capacity, raising the company's overall production capacity by around 50%. Current capacity utilization stands at roughly 90%. The new unit will make drip irrigation systems, HDPE pipes, drainage and sewerage pipelines, telecom ducts, industrial piping, mulching paper, and micro-irrigation accessories. The company says the GST cut to 5% on several agriculture products has sharply boosted demand from the farm sector, justifying the expansion. Funding will come from a mix of internal accruals, promoter contribution, bank loans/borrowings, and a fresh equity infusion. Land acquisition is targeted by 28 February 2026, construction completion by Q1 FY26-27, and commercial production is expected to start in Q2 FY26-27.
A 50% jump in manufacturing capacity is a meaningful expansion that could drive future revenue growth if demand sustains. However, the project is being funded partly through fresh equity and debt, which may lead to equity dilution for existing shareholders and higher interest costs. Investors should track the actual project cost, equity dilution quantum, and timely execution in the coming quarters.