Tenneco Clean Air India Limited has informed the Exchange about Capacity addition
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Tenneco Clean Air India Limited's Board has approved setting up a new factory at Kharkhoda, Haryana to expand manufacturing capacity. The company will add roughly 130,000 units of cold end products (mufflers and exhaust pipes) and 256,000 units of hot end products (catalytic converters) over the next two financial years in a phased manner. Total investment is around INR 710 million (~Rs 71 crore), to be fully funded through internal accruals. Currently, existing capacity utilization stands at 48% for cold end products and 77% for hot end products. The expansion is driven by rising demand and a goal to strengthen the manufacturing footprint in Northern India.
The expansion signals management's confidence in future demand growth, but since cold end utilization is only 48%, the new capacity will take time to be fully absorbed. Funding entirely through internal accruals means no debt burden or equity dilution for shareholders in the near term.