Mitsu Chem Plast Acquires Land for ₹6.70 Cr Expansion in Khalapur, Maharashtra

Mitsu Chem Plast Limited has announced the acquisition of land parcels in Khalapur, District Raigad, Maharashtra, for the expansion of its existing manufacturing facility. The company purchased the land for ₹6.70 crores through two separate agreements to enhance its production capabilities.

Land Acquisition Details

Mitsu Chem Plast entered into two separate land purchase agreements with individual sellers. The transaction details are structured as follows:

Parameter	Agreement 1	Agreement 2
Seller	Mr. Sambhaji Dhondu Patil	Mrs. Jayshree Sambhaji Patil
Agreement Value	₹5,10,05,400.00	₹1,59,83,000.00
Total Transaction Value	₹6,69,88,400.00 (inclusive of stamp duty and registration fees)

Strategic Purpose and Location

The land acquisition is specifically intended for the expansion of the company's existing manufacturing facility situated at Khalapur. This strategic move aligns with the company's growth plans in the plastic products manufacturing sector. The purchased land parcels are located in Khalapur, District Raigad, Maharashtra, which is in proximity to the company's current Unit-III manufacturing facility.

Transaction Compliance

The company has confirmed that the transaction does not involve any related party relationships. Both sellers, Mr. Sambhaji Dhondu Patil and Mrs. Jayshree Sambhaji Patil, are not related to the promoter, promoter group, or group companies in any manner. The agreements are standard land purchase transactions without any special rights or complex terms.

Manufacturing Infrastructure

Mitsu Chem Plast Limited operates multiple manufacturing units across Maharashtra. The company's existing facilities include:

Unit-I: N-83/84, MIDC, Tarapur, Boisar, District Palghar
Unit-II: J-237, MIDC, Tarapur, Boisar, District Palghar
Unit-III: Survey No. 5/11, 5/12, 5/15, Village Manik Nagar, Tal Khalapur, District Raigad

The company specializes in manufacturing industrial containers, furniture parts, automotive parts, and medical devices through blow molding, injection molding, and custom molding processes. This land acquisition represents a significant step in the company's expansion strategy to enhance its manufacturing capabilities and capacity in the plastic products sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.18%	-2.81%	-3.97%	-15.97%	-20.87%	-17.00%

Mitsu Chem Plast Limited , a leading manufacturer of polymer-based molded products, has reported strong financial results for the second quarter of fiscal year 2026, demonstrating resilience in a challenging environment for polymer-based industries.

Financial Highlights

For Q2 FY26, the company reported:

Metric	Q2 FY26	YoY Growth
Total Income	Rs 92.56 crore	13.63%
EBITDA	Rs 5.88 crore	24.13%
EBITDA Margin	6.37%	53 bps improvement
Net Profit	Rs 1.88 crore	65.72%
EPS	Rs 1.39	65.48%

For H1 FY26, Mitsu Chem Plast achieved:

Metric	H1 FY26	YoY Growth
Total Income	Rs 177.96 crore	9.95%
EBITDA	Rs 10.89 crore	14.03%
EBITDA Margin	6.13%	21 bps improvement
Net Profit	Rs 3.20 crore	43.65%
EPS	Rs 2.35	40.72%

Operational Performance

Mitsu Chem Plast operates three manufacturing facilities in Maharashtra, equipped with over 51 blow molding and 18 injection molding machines. The company's annual capacity exceeds 28,000 metric tons, with current utilization at around 70-71%.

The company's product mix comprises:

84% containers
15% furniture parts (under the Furnastra brand)
1% other products

Strategic Initiatives and Growth Plans

Expansion of Export Business: Mitsu Chem Plast currently exports to 17 countries, focusing on strengthening its presence in new markets.
Capacity Expansion: The company has initiated capacity expansion at its manufacturing facilities to cater to rising demand from both domestic and export customers.
Product Development: In the last six months, Mitsu Chem Plast has added around 25 new products to its portfolio, with plans for further additions in the coming year.
Sustainability Focus: The company's efforts in sustainability were recognized with the Envirocare Green Awards 2024 and the Sustainability Leader of the Year Award by FICCI.
Healthcare Furniture Segment: Under the Furnastra brand, Mitsu Chem Plast is focusing on designing durable, ergonomic, and high-quality hospital furniture and components.

Future Outlook

Mitsu Chem Plast has set an ambitious target of achieving Rs 1,000 crore in annual revenue by FY2028. The company aims to drive sustainable and profitable growth through innovation, operational excellence, and diversification, guided by four transformation pillars:

Healthcare furniture (Furnastra)
Packaging products
Operational excellence
Data-driven marketing

For the current fiscal year, the company is targeting a 15-20% volume growth, with plans to increase the share of value-added products from the current 15% to around 20%.

Challenges and Opportunities

While Mitsu Chem Plast has shown strong growth, it faces challenges in terms of margin pressure. The company's EBITDA margin of 6.37% in Q2 FY26, though improved, remains lower compared to some industry peers. Management attributes this to factors such as higher power costs in Maharashtra and raw material pricing pressures.

However, the company sees significant opportunities in the healthcare furniture segment and is expanding its presence in this higher-margin business. The growing recognition of the Furnastra brand, both domestically and internationally, is expected to drive future growth in this segment.

As Mitsu Chem Plast continues to focus on value-added products, expand its export business, and improve operational efficiencies, it aims to enhance its margin profile and achieve its ambitious revenue target for FY2028.