Latest Update on Capex:
AIL has clarified that the ongoing capital expenditure (Capex) project is still under development, and the recently shared PPT contained a typographical oversight.
The target capacities for this CAPEX, which is expected to be operational by December 24, are as follows:
The elevator division :
| Product | Existing Capacity (Per Month) | Targeted Capacity (Per Month) |
|---|---|---|
| Elevator Cabins | 150+ | 300+ |
| Automatic Doors | 2000+ | 5000+ |
| Safety Frames | 50+ | 100+ |
Other Components: Supporting parts and accessories for cabins, doors, and frames, which form an essential part of their product line, cannot be measured in specific unit terms.
In Stainless Steel division :
| Product Name | Existing Capacity (Per Month) | Targeted Capacity (Per Month) |
|---|---|---|
| Matt Polishing | 50+ Tons | 150+ Tons |
| Mirror Polishing | 50+ Tons | 100+ Tons |
| PVD Coating | 700+ Sheets | 2000 Sheets |
| Decorative SS Sheets | 500+ Sheets | 1500+ Sheets |
| Embossing | – | 100 Tons |
| Press Plates | 100 Plates | 100 Plates |
Note on Capacity Utilization:
All are interconnected in production process. For example, sheets may pass through multiple steps—such as embossing, matt or mirror polishing, and then decorative SS finishing—before reaching the final product stage. Thus, each process step contributes to a cumulative production journey for a single end product, and as such, the capacity utilized in each stage cannot be simply summed up as an overall utilization figure.
The primary focus area of the company is matt polishing, mirror polishing, PVD coating, and decorative SS sheets due to increased demand and customer interest especially post installation of embossing machine (put to use in Feb ’24 update); which is now commercially operational. Company has delivered trail batches to key clients and once they confirmed their complete satisfaction with the product quality, production will start in full swing.
Way forward:
AIL is expecting at least an additional topline of Rs 150cr on conservative basis post commercialization of CAPEX and successful installation of Salvagnini machine. The company is expecting to maintain EBITDA margins at 20% plus. At present, company do not foresee the need for further long term debt.
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