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.

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.