Highlights
- The company has approved an increase in cotton yarn manufacturing capacity from 10,000 MT per annum to 12,000 MT per annum.
- The planned expansion represents an increase of approximately 20%.
- Additional plant and machinery will be installed as part of the capacity enhancement.
- The project is expected to be commissioned by Q2 FY2027-28.
- The estimated investment requirement is approximately Rs. 45.00 Crores.
Company plans manufacturing capacity enhancement
Shreedhar Spinners Limited (NSE:SHREEDHAR) has approved a capacity expansion plan to increase its cotton yarn manufacturing capabilities. The company’s Board of Directors approved the proposal on 4 August 2026, with the objective of enhancing production capacity and supporting future business requirements.
Under the approved plan, the company intends to increase its cotton yarn manufacturing capacity from 10,000 MT per annum to 12,000 MT per annum, representing an addition of 2,000 MT per annum and an overall increase of approximately 20%.
The expansion will be undertaken through the installation of additional plant and machinery along with upgrades to the existing manufacturing infrastructure.
Existing capacity operates at high utilisation levels
According to the company’s disclosure, Shreedhar Spinners currently has a cotton yarn manufacturing capacity of 10,000 MT per annum.
The company reported existing capacity utilisation of approximately 95%, indicating high utilisation of its current manufacturing infrastructure. The planned expansion is aimed at increasing available production capacity while supporting the company’s ability to address additional demand for its products.
The capacity enhancement forms part of the completion of the company’s second unit and is intended to improve operational capability through additional manufacturing infrastructure.
Expansion expected to support market presence
The company stated that the capacity addition is aimed at increasing its footprint, primarily in Maharashtra and also in North Indian markets.
By expanding production capabilities, Shreedhar Spinners intends to strengthen its manufacturing capacity while improving operational efficiency. The company has indicated that the additional capacity will support its long-term growth strategy by enabling higher production capability and improving its presence across targeted markets.
The announcement does not provide specific details regarding additional production volumes by product category or customer additions following the expansion.
Investment planned through internal accruals and debt
The proposed capacity expansion requires an estimated investment of approximately Rs. 45.00 Crores.
The company plans to finance the project through a combination of internal accruals and debt. The investment will primarily be directed towards additional plant and machinery and upgrading existing manufacturing infrastructure.
The company has not disclosed further details regarding the specific debt structure or implementation milestones beyond the expected commissioning period.
Capacity addition targeted for Q2 FY2027-28
Shreedhar Spinners expects the proposed capacity enhancement to be commissioned by Q2 FY2027-28.
The expansion timeline includes installation of additional equipment and completion of infrastructure upgrades required for increasing manufacturing capacity. The project execution schedule will determine the timing at which the additional capacity becomes operational.
Once commissioned, the company’s total cotton yarn manufacturing capacity is expected to increase to 12,000 MT per annum.
Conclusion
Shreedhar Spinners has approved a capacity expansion plan to increase cotton yarn manufacturing capacity by approximately 20% from 10,000 MT per annum to 12,000 MT per annum. The project involves an estimated investment of Rs. 45.00 Crores and will be funded through internal accruals and debt. With commissioning expected by Q2 FY2027-28, the expansion is intended to enhance production capabilities, improve operational infrastructure and support the company’s presence in Maharashtra and North Indian markets.
FAQs
Q: What capacity expansion has Shreedhar Spinners approved?
A: The company has approved increasing cotton yarn manufacturing capacity from 10,000 MT per annum to 12,000 MT per annum.
Q: How much additional capacity will be added?
A: The company plans to add 2,000 MT per annum of cotton yarn manufacturing capacity.
Q: What is the estimated investment for the expansion project?
A: The company expects to invest approximately Rs. 45.00 Crores in the capacity enhancement.
Q: How will Shreedhar Spinners finance the expansion?
A: The company plans to finance the project through internal accruals and debt.
Q: When is the expanded capacity expected to be commissioned?
A: The capacity addition is expected to be commissioned by Q2 FY2027-28.