Carysil Limited has issued a clarification regarding the financing of its recently announced kitchen appliances capacity expansion project. The company has emphasized that it will not raise fresh funds through a Qualified Institutional Placement (QIP) for this initiative.

Funding Sources Confirmed

In an official statement to the stock exchanges, Carysil has outlined its funding strategy for the capacity expansion of its kitchen appliances manufacturing and assembly line at the Bhavnagar facility:

1. The project will be financed using proceeds from an existing QIP.
2. Additional funding will come from the company's internal accruals.

Addressing Misinterpretations

The clarification comes in response to potential misinterpretations of the company's earlier intimation. Carysil's management stated, "It has come to our notice that the subject intimation with respect to financing of capacity expansion of Kitchen Appliances manufacturing/assembly line may have been misinterpreted that the Company plans to raise fresh Qualified Institutional Placement (QIP)."

Commitment to Transparency

Reena Shah, Company Secretary & Compliance Officer of Carysil Limited, affirmed the company's dedication to transparency, stating, "The Company remains committed to transparency and assures investors that all disclosures are made in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015."

Recent Corporate Actions

In related news, Carysil has also announced:

1. The successful conclusion of its 38th Annual General Meeting (AGM), where all resolutions were passed with the requisite majority.
2. The closure of the trading window for designated persons until 48 hours after the declaration of the unaudited financial results for the quarter and half-year.

These developments underscore Carysil's adherence to regulatory requirements and its focus on clear communication with stakeholders as it moves forward with its expansion plans in the kitchen appliances segment.

CARYSIL Limited has announced a significant expansion of its kitchen appliance manufacturing capacity, aiming to strengthen its position in the home appliance market. The company's board of directors has approved a plan to increase production capacity by 50,000 units, bringing the total annual capacity to 150,000 units.

Expansion Details

The expansion project, estimated to cost ₹25.00 crore, will be implemented at CARYSIL's Bhavnagar, Gujarat facility. According to the company's regulatory filing, the new manufacturing line will be set up in a new factory building, which will also house an integrated Glass Processing Plant. This strategic move is expected to enhance CARYSIL's production capabilities and broaden its product offerings.

Funding and Timeline

CARYSIL plans to finance this expansion through a combination of a Qualified Institutional Placement (QIP) and internal accruals. The company has set an ambitious timeline for the project, targeting the commencement of commercial production in the first quarter of the financial year 2026-27.

Project Milestones

The expansion project will unfold in several key stages:

1. Construction of the new factory building
2. Placement of orders for machinery
3. Installation of equipment
4. Conducting trial runs

Regulatory Compliance

CARYSIL has assured stakeholders that all necessary statutory and environmental approvals will be obtained prior to the commissioning of the new production line. This commitment underscores the company's adherence to regulatory standards and environmental responsibilities.

Market Impact

While specific financial projections have not been disclosed, CARYSIL anticipates that the expansion will significantly boost its production capacity, diversify its product range, and ultimately lead to increased revenues. The company stated that detailed financial impact assessments will be shared upon finalization of the project.

This expansion move by CARYSIL reflects the company's confidence in the growing demand for kitchen appliances and its commitment to meeting market needs. As the project progresses, investors and industry observers will be keenly watching how this capacity boost translates into market share and financial performance for CARYSIL in the competitive home appliance sector.