The 40 cr is to automate the entire production especially the lamination part on their various products.This will enable the company to reduce the time taken to produce, store and pack the products significantly.So they should be able to produce much more on the same asset base leading to operating leverage kicking in. You can think of it as improvement in manufacturing technology hence the earlier Rev/GFA does not apply. I have experience working in this industry hence can understand this change. One can youtube videos of automated laminated plants and semi-automated ones the speed of production will be quite evident .
On the point of peers, I believe greenlam also announced it will be doubling its capacity using similar technological advancements. Quite a few prominent investors bought more share of it after their announcement.
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