Neuland approved plan entails an expenditure of ₹128 crores, aimed at enhancing the production capacity at the company’s Unit 3. This particular unit is situated at Gaddapotharam Village, Jinnaram Mandal, Sangareddy District, Telangana State.
The key details of this capital expenditure plan are as follows:
a) Existing Capacity (Unit 3): The current capacity of Unit 3 is 305 KL (Kiloliters).
b) Existing Capacity Utilization (Unit 3): The current utilization rate of Unit 3 is 62%.
c) Proposed Capacity Addition: The plan involves an addition of 207 KL to the existing capacity.
d) Period within which the proposed capacity is to be added: The expanded capacity is anticipated to become available for commercial production within approximately 2-3 years.
e) Investment required: The total investment required for this capacity expansion is ₹128 crores.
f) Mode of financing: The company intends to finance this expansion through a combination of internal accruals and debt.
g) Rationale: The primary rationale behind this capital expenditure is to sustain and meet the increasing demand from the company’s customers.
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