Prostarm Info Systems Limited has announced plans to establish a new manufacturing facility at Bakrol, Gujarat, marking a significant expansion in its production capabilities. The company informed stock exchanges about this development under Regulation 30 of the SEBI Listing Regulations.

Manufacturing Facility Details

The new facility will focus on assembling Uninterruptible Power Supply (UPS) systems, catering to a wide range of power requirements. The manufacturing unit is designed to strengthen the company's production capacity and meet growing market demand.

Investment and Financing Structure

The company has allocated ₹6.00 crores for this expansion project, covering comprehensive infrastructure development. The investment encompasses multiple components essential for establishing a fully operational manufacturing facility.

Investment Breakdown:

• Plant and machinery installation
• Civil construction works
• Infrastructure development
• Contingency provisions

Funding and Timeline

Prostarm Info Systems plans to finance this expansion through a combination of internal accruals and proceeds from its Initial Public Offering (IPO). The company expects commercial production to begin by May 2026, contingent upon receiving all necessary statutory and regulatory approvals.

Strategic Rationale

The establishment of this new manufacturing unit aligns with the company's strategic objective to create and further strengthen its manufacturing capacity. This expansion positions Prostarm Info Systems to better serve the growing demand for UPS systems across various power capacity ranges, from small-scale 1KVA units to large-scale 600KVA systems.

Prostarm Info Systems has reported significant business activity with bidders tendering projects worth ₹2000.00 crores, while the company maintains its current order book at ₹1100.00 crores. This development highlights Prostarm Info Systems' active participation in substantial project opportunities within the capital goods and electrical equipment sector.

Current Business Position

The company's financial positioning demonstrates strong market engagement across multiple fronts:

Market Activity Overview

The substantial tender activity of ₹2000.00 crores represents significant project opportunities that Prostarm Info Systems is actively pursuing. This level of bidding activity indicates robust market demand in the company's operational segments and reflects its capability to participate in large-scale infrastructure and equipment projects.

The maintained order book of ₹1100.00 crores provides a solid foundation for Prostarm Info Systems' ongoing operations and revenue generation. This existing order book represents confirmed business that supports the company's operational stability while it pursues additional opportunities through the current tendering process.

Business Implications

The combination of substantial tender activity and a robust existing order book positions Prostarm Info Systems favorably within the capital goods and electrical equipment sector. The ₹2000.00 crore tender activity demonstrates the scale of projects available in the market and the company's participation in competitive bidding processes for significant infrastructure and equipment contracts.

This level of bidding activity, coupled with the current order book, indicates a strong business pipeline for Prostarm Info Systems. It suggests potential for future growth and expansion of the company's project portfolio, subject to the outcome of the bidding process.