Swiss Military Consumer Goods Ltd acquires land and building at Faridabad for expansion

On May 2, 2024, Swiss Military Consumer Goods Ltd entered an Agreement to Sell, for acquiring a strategically located land & building in Sector 24, the industrial hub of Faridabad, Haryana. This acquisition involves land and building with an approximate area of 1.21 acres and a built-up area of about 85,000 sq. feet, purchased for INR 29.53 Crores.

Purpose of Acquisition:

This acquisition marks a pivotal step in our strategic expansion, aligning with the 'Make in India' initiative. The land & building is earmarked for a new manufacturing facility for luggage and travel gear intended, to cater to both domestic and international markets. This will enhance our capability to meet growing demand and expand our market footprint globally. The proposed manufacturing facility shall be established through wholly owned subsidiary company i.e. SM Travel Gear Private Limited.

Details of the Proposed Manufacturing Facility:

- Capacity: Approx. 10 lakh pcs per year
- Completion Target: On or before December 31, 2024.
- Total Investment: INR 56.50 Crores (inclusive of land, building, plant, machinery, and working capital)

Financing Details:

- Internal accruals: INR 12 Crores
- Term Loan: INR 20 Crores
- Proceeds from proposed Rights Issue: INR 24.5 Crores

Strategic Rationale:

This investment underlines our commitment to innovation and operational excellence. The establishment of this facility is a strategic move to enhance our production capabilities and market responsiveness. It will significantly bolster our position in the competitive global travel gear market. We trust that this new facility will be a cornerstone in our journey towards sustained growth and leadership in the industry.

Shares of Swiss Military Consumer Goods Ltd was last trading in BSE at Rs. 28.84 as compared to the previous close of Rs. 27.47. The total number of shares traded during the day was 1084594 in over 2668 trades.

The stock hit an intraday high of Rs. 28.84 and intraday low of 28.06. The net turnover during the day was Rs. 31083116.00.

Source : Equity Bulls

Keywords

SwissMilitaryConsumerGoods Acquisition Land Building ExpansionProject Luggage TravelGear