AVI Polymers Limited has announced the incorporation of a wholly owned subsidiary focused on artificial intelligence technologies, marking a strategic expansion into technology-driven innovation. The company disclosed this development to BSE Limited on March 11, 2026, under Regulation 30 of SEBI listing requirements.

Subsidiary Formation Details

The new subsidiary, AVI AI Technologies Private Limited, was incorporated on February 18, 2026, with specific operational parameters:

Strategic Focus Areas

The subsidiary will concentrate on developing AI applications across three key sectors: agriculture, healthcare, and defence-oriented technology ecosystems. The company has outlined specific operational areas for the new entity:

• Research & Development
• Innovation, Design, and Development
• Deployment and commercialization of Artificial Intelligence-led digital platforms
• Intelligent systems
• Advanced data solutions
• Automation frameworks
• Next-generation software products

Market Opportunity Assessment

AVI Polymers has identified substantial growth potential in the targeted AI sectors, citing industry estimates for market size and growth projections:

Technology Development Strategy

The subsidiary represents AVI Polymers' commitment to building a technology-driven innovation ecosystem within the company structure. The initiative aims to create scalable, innovation-led technology solutions focused on developing proprietary digital assets and applied AI capabilities.

The company emphasized that this strategic step aligns with its long-term strategy to participate in high-growth, knowledge-driven sectors. The subsidiary will serve as a dedicated vehicle to incubate AI-led intellectual property, accelerate technology development, and evaluate scalable commercial opportunities.

Corporate Governance

The disclosure was made by Chintan Yashwantbhai Patel, Managing Director (DIN: 10774473), in compliance with SEBI listing obligations. The company stated that transparent communication of strategic initiatives enables investors and stakeholders to better understand the long-term growth direction of the business.

AVI Polymers Ltd. has successfully incorporated a wholly owned subsidiary company, AVI AI Technologies Private Limited, marking a strategic expansion into the artificial intelligence and information technology services sector. The Ministry of Corporate Affairs approved the incorporation on February 18, 2026, and issued the Certificate of Incorporation for the new entity.

Subsidiary Company Details

The newly incorporated subsidiary operates under specific parameters that establish its foundation in the AI technology sector:

Strategic Business Expansion

The incorporation represents AVI Polymers' diversification strategy beyond its traditional polymer business. The subsidiary will operate in the Information Technology services and Artificial Intelligence solutions industry, positioning the parent company to capitalize on emerging technology trends. This move into AI and IT services marks a significant departure from AVI Polymers' main line of business.

Ownership and Financial Structure

AVI Polymers Ltd. maintains complete control over the subsidiary through 100% shareholding, either directly or through its nominee. The initial subscription to the share capital will be executed through cash or banking channels. As a wholly owned subsidiary, AVI AI Technologies Private Limited qualifies as a related party transaction under regulatory guidelines.

Regulatory Compliance

The company has fulfilled its disclosure obligations by informing BSE Limited under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was made on February 21, 2026, by Managing Director Chintan Yashwantbhai Patel, ensuring compliance with mandatory reporting requirements for material events.

Business Objectives and Market Position

The subsidiary's establishment reflects AVI Polymers' commitment to expanding its business portfolio into high-growth technology sectors. With AI and IT services representing rapidly evolving markets, this strategic incorporation positions the company to explore new revenue streams and technological capabilities. The timing of this expansion aligns with increasing demand for artificial intelligence solutions across various industries.