PG Electroplast , a leading electronics manufacturing services (EMS) provider, has taken a significant step towards expanding its production capacity. The company's board has approved an enabling resolution to raise Rs 76.60 crore through a mix of equity shares and convertible debentures.

Funding Details

The fundraising will be conducted through a preferential allotment, with the following breakdown:

• Equity shares worth Rs 40.30 crore
• Compulsorily convertible debentures amounting to Rs 36.30 crore

Notable investors participating in this round include:

• Baring Private Equity India AIF
• Ananta Capital
• The Patni family office

Expansion Plans

PG Electroplast has outlined ambitious expansion plans with a total investment of approximately Rs 100.00 crore. The funds raised will be utilized for:

1. Expanding the air conditioning plant in Pune
2. Establishing a new plant in Greater Noida for manufacturing:
   • Air coolers
   • Mobile phone parts
   • Plastic components

Strategic Objectives

Managing Director Vikas Gupta emphasized that the expansion aims to:

• Triple the production capacity of air conditioning manufacturing
• Meet the criteria for the Production Linked Incentive (PLI) scheme

Current Operations

PG Electroplast currently operates six manufacturing units strategically located across:

• Greater Noida
• Roorkee
• Ahmednagar

These facilities serve a prestigious clientele, including major players in the consumer electronics industry such as LG Electronics, Whirlpool, Haier, and Blue Star.

Financial Performance

The company has demonstrated strong financial growth:

• FY2020 operating revenues: Rs 642.00 crore
• Year-over-year growth: 25.4% (from Rs 512.00 crore in the previous fiscal year)

This expansion move by PG Electroplast signals the company's commitment to strengthening its position in the electronics manufacturing sector, particularly in air conditioning and consumer electronics. The significant investment and involvement of notable investors underscore the potential for growth in India's manufacturing landscape.

In a significant development for the manufacturing sector, Next Generation Manufacturers, a subsidiary of PG Electroplast , has entered into a Memorandum of Understanding (MoU) with the Government of Maharashtra. The agreement outlines plans for a mega project with a substantial investment of ₹1000.00 crore.

Details of the MoU

The MoU, signed between Next Generation Manufacturers and the Maharashtra government, marks a major step towards enhancing the state's manufacturing capabilities. The proposed mega project is expected to bring substantial economic benefits to the region.

Investment and Scale

The cornerstone of this agreement is the massive ₹1000.00 crore investment commitment from Next Generation Manufacturers. This significant financial injection underscores the scale and ambition of the planned manufacturing project.

Potential Impact

While specific details about the nature of the manufacturing facility or its output remain undisclosed, an investment of this magnitude is likely to have far-reaching implications. It could potentially create numerous job opportunities, boost the local economy, and contribute to the state's industrial growth.

Company Background

PG Electroplast, the parent company of Next Generation Manufacturers, is known for its presence in the electronics manufacturing services (EMS) sector. This move appears to align with the company's strategy to expand its manufacturing footprint and capabilities.

Looking Ahead

As the project moves forward, more details are expected to emerge regarding the specific nature of the manufacturing facility, its production capacity, and the timeline for implementation. Stakeholders will be keenly watching how this significant investment translates into tangible economic outcomes for both the company and the state of Maharashtra.