Shilp Gravures approves ₹6.71 Cr capacity expansion in Karnataka
Shilp Gravures Limited announced a ₹6.71 crore capacity expansion in Karnataka, adding over 18,000 gravure cylinders annually. Funded by internal accruals, the project splits costs between ₹5.71 crore for machinery and ₹1 crore for setup expenses. Operations are slated to begin in FY26-27, complementing the existing 94,000-unit capacity in Gujarat.
*this image is generated using AI for illustrative purposes only.
Shilp Gravures Limited has approved a capacity expansion initiative worth ₹6.71 crore to establish new manufacturing facilities in Karnataka. The Board of Directors sanctioned the investment on August 17, 2026, marking a strategic move to bolster production capabilities ahead of long-term growth prospects.
The proposed expansion involves the purchase of plant and machinery costing approximately ₹5.71 crore, plus applicable taxes and related charges. An additional ₹1 crore has been allocated for expenses and advances related to the commencement of the manufacturing facility. The company plans to fund the entire project through internal accruals, avoiding external debt for this specific capital expenditure.
Capacity Utilization Context
The decision to expand comes as Shilp Gravures operates its existing facility in Rakanpur, Gujarat, with an annual capacity of approximately 94,000 gravure cylinders. Current utilization stands at roughly 75,000 cylinders per year. While this indicates that the existing Gujarat plant is not operating at full theoretical capacity, the board cited readiness for long-term growth as the primary rationale for the new investment.
The new Karnataka facility is designed to produce more than 18,000 gravure cylinders per year at full utilization. Manufacturing operations at the new site are expected to commence during FY26-27.
What the Numbers Show
The allocation of funds reveals a distinct split between capital expenditure and operational setup costs. Of the total ₹6.71 crore approval, approximately 85% (₹5.71 crore) is directed toward tangible assets (plant and machinery), while the remaining 15% (₹1 crore) covers ancillary expenses and advances. This structure suggests a focus on heavy asset acquisition rather than working capital buildup for the new site.
Furthermore, the addition of 18,000 units represents nearly a 19% increase in total aggregate annual capacity (from 94,000 to 112,000+ units), assuming the existing Gujarat capacity remains unchanged. This expansion provides headroom for future demand spikes without requiring immediate full utilization of the current Gujarat facility.
| Particulars | Details |
|---|---|
| Total Investment Approved | ₹6.71 crore (plus taxes) |
| Plant & Machinery Cost | ₹5.71 crore |
| Setup Expenses/Advances | ₹1.00 crore |
| New Capacity Addition | >18,000 cylinders/year |
| Existing Capacity (Gujarat) | ~94,000 cylinders/year |
| Existing Utilization | ~75,000 cylinders/year |
| Funding Source | Internal Accruals |
| Expected Commencement | FY26-27 |
The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Jay Chavda, Company Secretary & Compliance Officer, certified the filing.
Historical Stock Returns for Shilp Gravures
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
How might the strategic shift to Karnataka impact Shilp Gravures' logistics costs and supply chain resilience compared to the existing Gujarat facility?
Given the current 80% utilization in Gujarat, what specific market drivers or customer contracts are expected to absorb the new 18,000-unit capacity by FY26-27?
Will the company's reliance on internal accruals for this expansion constrain its ability to pursue other capital-intensive projects or M&A opportunities in the near term?
18
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
