Orient Paper Boosts Capacity: ₹125 Cr Expansion Underway! 🚀

Hey there, finance enthusiasts! 👋 We’ve got some interesting news from Orient Paper & Industries Limited (ORIENTPPR) that could shape its future growth. The company’s Board of Directors recently gave the green light to a significant capital expenditure plan, signaling a clear intent to boost its manufacturing capabilities.

So, what’s the big deal? Orient Paper is set to invest approximately ₹125 crore into its manufacturing facility located in Amlai, Madhya Pradesh. This isn’t just a minor tweak; it’s a strategic move aimed at debottlenecking, adding capacity, and ultimately improving cost efficiency across its operations. Think of it as upgrading a highway to handle more traffic and make journeys smoother! 🛣️

Specifically, the company plans to add 8,500 tonnes per annum (TPA) to its existing capacity of 1,00,000 TPA. This expansion is expected to be completed within the next 24 months, which means we could see the benefits of this investment materializing relatively soon. The funding for this ambitious project will come from a mix of debt and/or internal accruals, a common approach for such large-scale investments.

At the close of the last trading session, Orient Paper & Industries Limited’s shares were trading at ₹27.67, reflecting a slight dip of 0.9%. This capacity expansion is a forward-looking step that could strengthen the company’s market position and operational efficiency in the long run. It’s always exciting to see companies investing in their core capabilities for future growth! ✨

source: Corporate Announcement

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