Nahar Poly Films Ltd. , a leading manufacturer of Biaxially Oriented Polypropylene (BOPP) films, has announced a significant expansion plan alongside impressive first-quarter results.

Expansion Plans

The company's Board of Directors has approved an ambitious expansion proposal to install a third BOPP film production line. This new line will add an annual production capacity of 36,000 MT, supplementing the existing capacity of 60,000 MT per annum. The expansion comes with a substantial capital outlay of approximately ₹450 crore.

Nahar Poly Films plans to finance this expansion through a combination of term loans from banks and internal accruals. The company expects the new production line to be operational within the next 2-3 years.

Rationale Behind Expansion

The decision to expand comes in response to the growing demand for BOPP films, driven by several factors:

• The rise of e-commerce in the food and beverage sector
• Increasing consumer awareness
• Improved economic environment
• Rising disposable incomes

These factors have led to increased consumption of packaged goods, which require protective packaging. BOPP films play a crucial role in this packaging ecosystem, protecting products from contamination and damage.

Q1 Financial Performance

Alongside its expansion plans, Nahar Poly Films reported strong financial results for the first quarter:

The company's performance shows significant year-on-year improvement across all key financial metrics. The EBITDA margin, in particular, saw a substantial increase of 526 basis points, reflecting enhanced operational efficiency.

Dividend Announcement

In light of the strong financial performance, the Board of Directors has recommended a dividend of ₹1 per equity share (face value ₹5) for the financial year ended March 31, 2025. The record date for dividend eligibility has been set as September 5, 2025.

Conclusion

Nahar Poly Films' expansion plan, coupled with its robust financial performance, positions the company for potential growth in the BOPP film market. As the packaging industry continues to evolve with changing consumer behaviors and e-commerce trends, the company's increased production capacity could help meet the rising demand for high-quality packaging solutions.

Investors and industry observers will be keenly watching how this expansion impacts the company's market position and financial performance in the coming years.

Nahar Poly Films Ltd. , a leading manufacturer of Biaxially Oriented Polypropylene (BOPP) films, has unveiled an ambitious expansion plan while reporting robust financial results for the first quarter of the fiscal year.

Expansion Plan

The Board of Directors of Nahar Poly Films has approved a significant expansion proposal to install a third BOPP film production line. This new line will have an annual production capacity of 36,000 MT, requiring a capital outlay of approximately ₹450 crore. The expansion is expected to be completed within the next 2-3 years.

Rationale Behind Expansion

The company cites the rising demand for BOPP films as the primary driver for this expansion. The growth in e-commerce, particularly in the food and beverage sector, coupled with increased consumer awareness and improved economic conditions, has led to higher consumption of packaged goods. This trend has significantly boosted the demand for protective packaging materials like BOPP films.

Financing the Expansion

Nahar Poly Films plans to finance this expansion through a combination of term loans from banks and internal accruals. This approach suggests a balanced funding strategy, leveraging both debt and the company's own resources.

Q1 Financial Performance

Alongside the expansion announcement, Nahar Poly Films reported strong financial results for the quarter ended June 30:

The company's revenue from operations increased by 17.27% year-over-year, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant jump of 86.58%. The EBITDA margin improved substantially from 8.86% to 14.12%, indicating enhanced operational efficiency.

Current Capacity and Utilization

Nahar Poly Films' existing BOPP film production capacity stands at 60,000 MT per annum, which the company reports is being fully utilized. The proposed expansion will increase the total capacity to 96,000 MT per annum, positioning the company to meet the growing market demand more effectively.

Looking Ahead

With this expansion plan, Nahar Poly Films aims to capitalize on the increasing demand for packaging materials, particularly in the e-commerce and consumer goods sectors. The company's strong financial performance in Q1 provides a solid foundation for this significant investment, which is expected to drive growth and enhance market position in the coming years.

Investors and industry observers will be keenly watching how this expansion unfolds and its impact on Nahar Poly Films' future performance in the competitive BOPP film market.