Balkrishna Industries commissions brownfield expansion much ahead of scheduleBALKRISIND - 2113 Change: 10.70 (0.51 %)
News: In a regulatory filing Balkrishna Industries(BIL) informed exchange about commencement of commercial production from its brownfield expansion & debottlenecking project at the Bhuj Plant.
Views: The said project was envisaged to be commissioned by H2FY23. Hence, such early commissioning comes as a positive surprise. It will add ~50,000 tonne of capacity per annum with BIL’s present capacity pegged at 285,000 tonne. Such a step bodes well for the company as it was already clocking ~70,000-75,000 MT per quarter at ~nearly 100% capacity utilisation thereby limiting its ability to supply to its end markets. We expect BIL to report healthy profitable growth, going forward. Capex costs for the project was ~Rs.800 crore with revenue potential of ~Rs.1,450 crore with RoCE in excess of 30%.