Kanpur Plastipack announces ₹105.26 Crore Investment in Capacity Expansion and Diversification Initiatives

Kanpur Plastipack Limited (KPL), a leading manufacturer of FIBCs and technical textiles, has announced a capital expenditure plan of ₹105.26 crore aimed at enhancing capacity, operational efficiency, and diversification into new product segments.

As part of this initiative, the Company is constructing a new facility for its FIBC Division at Unit 3, Gajner Road, with an investment of ₹47.22 crore covering three projects - a new FIBC manufacturing building, a modern roll management system, and a new warehouse for the Trading Division. The FIBC expansion will add 1,200 MT of capacity in the next fiscal year, with a long-term target of 6,000 MT over five years, enabling a shift toward higher value-added products and strengthening KPL's position in export and premium packaging markets. The modern roll management system will introduce advanced racking and retrieval infrastructure for improved inventory control, space utilization, and operational safety. Additionally, the new Trading Division warehouse at Gajner Road will replace rented premises, streamlining logistics and enhancing cost efficiency.

Further, KPL is making a strategic investment of ₹58.04 crore to diversify into non-woven fabrics, setting up a Greenfield manufacturing facility using needle-punching technology. This marks KPL's entry into a fast-growing market with applications in automotive interiors, shoe insoles, and carpets. The project will be led by an industry veteran with over 25 years of experience in the non-woven sector and is expected to open new avenues for growth in technical textiles.

Commenting on the development, the Mr. Manoj Agarwal, Chairman & Managing Director, stated, "These investments mark a significant step forward in Kanpur Plastipack's growth journey - expanding our capacity, diversifying into new materials, and reinforcing our leadership in value-added packaging and technical textiles. We are confident that these initiatives will drive sustainable growth and create long-term value for all stakeholders."

The total investment of ₹105.26 crore will be funded through a mix of internal accruals and term loans. Implementation will take place over 12-18 months, in a phased manner.

Shares of Kanpur Plastipack Limited was last trading in BSE at Rs. 208.90 as compared to the previous close of Rs. 207.40. The total number of shares traded during the day was 1407 in over 88 trades.

The stock hit an intraday high of Rs. 212.00 and intraday low of 205.00. The net turnover during the day was Rs. 294440.00.

Source : Equity Bulls

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KanpurPlastipack INE694E01014 Investment Capex