Avro India Boosts Production Capacity with Rs 27 Lakh Investment in New Injection Moulding Machine

Avro India Limited has announced a significant expansion of its production capacity through the acquisition of a new Injection Moulding Machine. The company has invested Rs 27.09 lakh in this strategic move, aimed at enhancing its manufacturing capabilities and meeting growing market demands.

Capacity Expansion Details

According to the company's regulatory filing, the new machine will increase Avro India's production capacity from 42,00,000 pieces per annum to 44,00,000 pieces per annum. This represents a 4.76% boost in the company's annual production capability.

Investment and Financing

The Rs 27.09 lakh investment for the capacity expansion has been funded through a combination of internal accruals and finance. This approach demonstrates the company's financial prudence and its commitment to growth without overly relying on external funding sources.

Timeline and Implementation

The Injection Moulding Machine was purchased on September 12, as disclosed in the company's filing to the stock exchanges. Avro India expects the capacity addition to be fully operational by September, indicating a swift implementation of the new equipment.

Strategic Rationale

Sumit Bansal, Company Secretary and Compliance Officer of Avro India Limited, stated in the regulatory filing that "This additional capacity will help the Company to service the multiple range of the products." This expansion is likely to enable Avro India to diversify its product offerings and cater to a broader customer base.

Additional Corporate Developments

In a separate but noteworthy development, Avro India Limited has also made a significant investment in its wholly-owned subsidiary, Avro Recycling Limited. The company disclosed that on September 20, Avro Recycling Limited allotted 82,83,789 equity shares to Avro India at Rs 48.00 per share, amounting to a total investment of Rs 39,76,21,872.00.

This substantial investment in the recycling subsidiary underscores Avro India's commitment to expanding its business portfolio and potentially exploring opportunities in the recycling sector.

Conclusion

Avro India Limited's recent investments in both production capacity and its recycling subsidiary reflect a multi-faceted growth strategy. The company appears to be positioning itself for increased production capabilities while also diversifying its business interests. Shareholders and market observers will likely be watching closely to see how these investments translate into operational efficiency and financial performance in the coming quarters.