Ecoplast Ltd , a leading player in the plastic industry, has announced a significant capacity expansion plan, demonstrating its commitment to growth and meeting market demands. The company's Board of Directors has approved the addition of new extrusion film and coating plants, with a total investment of Rs 12.75 crore.

Expansion Details

The capacity expansion plan includes:

This expansion builds upon Ecoplast's current operations, which are running at 100% capacity utilization:

• Existing Extrusion Capacity: 5,760 MT per annum
• Existing SPF Capacity: 4,080 MT per annum

Financial Implications

The Rs 12.75 crore investment for this expansion will be financed through a combination of internal accruals and borrowings. This approach suggests a balanced funding strategy, leveraging the company's financial strength while maintaining financial flexibility.

Balance Sheet Analysis

A review of Ecoplast Ltd's recent balance sheet data reveals a strong financial position, supporting its expansion plans:

The company's robust growth in total assets and shareholders' capital over the past year indicates a strong financial foundation for undertaking this expansion. The significant increase in current assets suggests improved liquidity, which could partially support the investment plans.

Market Implications

This capacity expansion is likely to strengthen Ecoplast Ltd's market position in the plastic industry. The addition of 1,800 MT in extrusion film plant capacity and 1,680 MT in coating plant capacity represents a substantial increase in the company's production capabilities, potentially leading to increased market share and revenue growth in the coming years.

The phased implementation of the expansion, with completion dates set for June and December 2026, indicates a strategic approach to growth, allowing the company to gradually increase its production capacity while managing the associated risks and capital expenditure.

Investors and industry observers will likely watch closely how this expansion impacts Ecoplast's financial performance and market position in the coming years, particularly given the company's current full capacity utilization and the significant scale of this expansion plan.

Ecoplast Limited has successfully conducted the National Company Law Tribunal (NCLT) mandated meetings for its equity shareholders and unsecured creditors to consider the proposed merger with Kunal Plastics Private Limited. This development marks a significant step in the corporate restructuring process for both companies.

Key Details of the Meetings

• Meeting Date: November 28, 2025
• Meetings Held: Equity Shareholders and Unsecured Creditors
• Meeting Format: Video Conferencing
• Purpose: To consider the Scheme of Amalgamation
• Attendance: 30 equity shareholders and 3 unsecured creditors
• Quorum: Achieved as required

Background and Legal Framework

The meetings were held in compliance with the NCLT Ahmedabad Bench's directive, which came in response to a Joint Company Scheme Application filed by Ecoplast Limited and Kunal Plastics Private Limited. This application was submitted under Sections 230 to 232 of the Companies Act, 2013, which govern the process of mergers and amalgamations.

Merger Specifics

Meeting Outcomes

While the meetings achieved the required quorum, the detailed voting results are yet to be submitted. Ecoplast Limited has indicated that these results will be provided separately as part of the ongoing corporate restructuring process.

Next Steps

1. Submission of detailed voting results from the meetings
2. Further proceedings based on the outcome of the shareholder and creditor votes
3. Continuation of the amalgamation process, subject to necessary approvals

This development represents a critical juncture in the merger process between Ecoplast Limited and Kunal Plastics Private Limited. The successful conduct of these meetings, as mandated by the NCLT, demonstrates progress in the proposed amalgamation.

Investors and stakeholders of Ecoplast Limited should closely monitor further announcements regarding the voting results and any additional details about the proposed merger scheme as the corporate restructuring process moves forward.