Pyramid Technoplast Ltd announces Kutch Expansion and Government Subsidy Benefits

Pyramid Technoplast Limited, a leading manufacturer of rigid industrial packaging products, today announced two key strategic developments aimed at strengthening its manufacturing footprint, improving operational efficiency and enhancing long-term returns.

The Company is progressing with a new manufacturing facility in Kutch, Gujarat, while also securing significant government subsidy benefits for its Wada and Bharuch facilities. These initiatives are expected to strengthen the Company's regional presence, improve cost competitiveness and enhance the return profile of its existing and upcoming investments.

1. Kutch Expansion to Add 10,000 IBCs per Month

Pyramid Technoplast is establishing a new manufacturing facility in Kutch, Gujarat. The expansion is strategically positioned to strengthen the Company's presence across Western India, while providing customers with faster deliveries and improved service levels. The location is also expected to provide logistical benefits through lower freight costs and shorter delivery timelines.

The new facility will provide an additional growth platform for the Company's IBC business and enable Pyramid Technoplast to cater to the increasing demand from customers in the region.

Key highlights:

- Investment: ₹20-25 crore
- Capacity: 10,000 IBC units/month
- Expected commissioning: March 2027
- Strategic benefit: Stronger presence in Kutch & Western India
- Operational benefit: Lower freight, faster deliveries and improved customer service

2. Government Subsidy Benefits to Improve Project Economics

The Company has also received government subsidy approvals covering its Wada and Bharuch facilities, which are expected to reduce the effective cost of investment and improve project economics.

For the Wada facility, subsidy of approximately ₹24.9 crore over 10 years has been approved, with the sanction expected to be received by March 2027.

For Unit 7 at Bharuch, subsidy benefits of approximately ₹10.5 crore have been approved, with the application for formal sanction yet to be filed.

Together, these benefits represent approximately ₹35.4 crore of potential subsidy support, subject to the applicable approval and disbursement processes.

The subsidy benefits are expected to lower the effective capital cost of the respective projects, thereby improving ROCE, IRR and project payback, while providing greater visibility on longterm cash generation.

Mr. Bijay Agarwal, Managing Director, Pyramid Technoplast Limited, said: "We are pleased to announce these two important developments as we continue to strengthen the foundation for Pyramid Technoplast's next phase of growth. Our Kutch expansion will add 10,000 IBC units per month of capacity and strengthen our presence in Western India, while also providing meaningful logistical and customer-service advantages.

At the same time, the government subsidy benefits secured for our Wada and Bharuch facilities will reduce the effective cost of our investments and further improve the return profile of these assets. These developments are aligned with our broader strategy of expanding capacity in line with market demand while maintaining disciplined capital allocation.

With our existing manufacturing footprint continuing to ramp up, the Kutch facility adding incremental capacity and efficiency initiatives such as solar and recycling contributing to cost optimisation, we remain focused on converting our expanded manufacturing platform into higher utilisation, stronger profitability and improved returns over the medium term."

Shares of Pyramid Technoplast Limited was last trading in BSE at Rs. 164.30 as compared to the previous close of Rs. 173.00. The total number of shares traded during the day was 9686 in over 261 trades.

The stock hit an intraday high of Rs. 183.30 and intraday low of 160.45. The net turnover during the day was Rs. 1694023.00.

Source : Equity Bulls

Keywords

PyramidTechnoplast INE0MIS01010 Packaging Expansion Kutch