PG Electroplast , a leading electronics manufacturing services (EMS) provider, has announced a significant expansion of its manufacturing capabilities with the acquisition of 50 acres of land in Sri City. The company plans to invest 10.00 billion rupees over the next five years to develop this new facility.

Phased Development Plan

PG Electroplast has outlined a strategic approach to developing its manufacturing capacity in phases. The first phase of this ambitious project will focus on refrigerator production, with a targeted capacity of 1.20 million units. The company aims to have this initial phase operational by December 2026.

Investment and Expansion

The 10.00 billion rupee investment over a five-year period underscores PG Electroplast's commitment to growth and its confidence in the demand for its products. This significant financial commitment is expected to not only boost the company's production capabilities but also potentially create new job opportunities in the region.

Strategic Location

Sri City, chosen as the site for this expansion, is known for its strategic importance as an integrated business city in Andhra Pradesh. Its location and infrastructure make it an attractive destination for manufacturing units, potentially offering PG Electroplast logistical advantages and access to a skilled workforce.

Market Implications

This expansion move by PG Electroplast could have several implications for the company and the wider electronics manufacturing sector in India:

1. Increased Production Capacity: The new facility, once fully operational, will significantly boost PG Electroplast's manufacturing output, particularly in the refrigerator segment.

2. Market Competitiveness: Enhanced production capabilities may allow the company to meet growing demand more effectively and potentially increase its market share.

3. Technological Advancements: The investment in a new facility may also involve the adoption of advanced manufacturing technologies, potentially improving product quality and efficiency.

4. Economic Impact: The substantial investment and job creation potential of this project could contribute to the local and regional economy.

Air Conditioner Sales Recovery

In a related development, air conditioner sales in North India have shown strong performance during the festive week, fully recovering previously lost sales. This recovery affects companies in the air conditioning sector, including PG Electroplast, Voltas, and Blue Star. The rebound in sales indicates a positive trend in consumer demand for cooling appliances, which could potentially benefit PG Electroplast's expansion plans.

As PG Electroplast moves forward with this expansion and capitalizes on the recovering air conditioner market, stakeholders will be keenly watching the project's progress and its impact on the company's performance in the coming years.

PG Electroplast , through its wholly-owned subsidiary PG Technoplast Private Limited (PGTL), has made a significant move in its expansion strategy by acquiring a 50-acre land parcel in Sri City, Andhra Pradesh. This acquisition marks the company's first venture into South India and represents the largest land acquisition in the history of the PG Group.

Investment and Expansion Plans

The company has unveiled ambitious plans to invest approximately ₹1,000.00 crore over the next five years to develop a state-of-the-art integrated manufacturing campus on this newly acquired land. This substantial investment underscores PG Electroplast's commitment to growth and its confidence in the Indian manufacturing sector.

Phased Development

The development of the new facility is set to occur in phases:

1. First Phase:

   • Establishment of a refrigerator plant with an annual capacity of 1.20 million units
   • Expected commercial production start: December 2026
   • Projected job creation: Over 500 jobs

2. Future Phases:

   • Designed for expansion into air conditioners, washing machines, and other home appliances
   • Potential for electronics manufacturing

Strategic Location

The new facility in Sri City is strategically positioned near Chennai port, which offers several advantages:

• Strengthens PG Electroplast's pan-India manufacturing footprint
• Supports long-term export opportunities
• Enhances logistics and supply chain efficiency

Management's Perspective

Mr. Vikas Gupta, Managing Director – Operations, expressed his enthusiasm about this milestone, stating, "This is an emotional and proud milestone for the PG Group. Sri City marks our very first step into South India and also our largest land acquisition so far. It reflects our deep commitment to building for the long term, not just for our customers but also for the communities we will engage with."

Broader Impact

This expansion is expected to contribute significantly to:

• Andhra Pradesh's industrial growth
• India's vision of Atmanirbhar Bharat (Self-Reliant India)
• Job creation and economic development in the region

About PG Electroplast Limited

PG Electroplast is a leading provider of Electronic Manufacturing Services (EMS) and contract manufacturing for major consumer durable and electronics brands in India. The company boasts substantial capacity in Plastic Injection moulding and offers capabilities across the value chain in Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM) for products such as Washing Machines, Room ACs, Air-Coolers, and LED TVs.

This expansion represents a transformative chapter in PG Electroplast's journey, positioning the company for future growth and enhancing its manufacturing capabilities in the rapidly evolving Indian electronics and appliances market.