Acrysil gains on capacity expansion plan

Acrysil jumped 4.7% to Rs 128 after the company announced 20% capacity expansion of quartz kitchen sinks to meet export demand.

Acrysil, largest manufacturer of 'quartz kitchen sinks' in India and Asia, has announced that the company is expanding its production capacity of its quartz kitchen sinks by 20% through brownfield expansion at its Bhavnagar plant in Gujarat.

The proposed capex will increase the manufacturing capability of quartz kitchen sinks by about 1,00,000 units per annum to 6,00,000 units p.a. The purpose of the expansion is to meet the increasing demand from the export market.

Currently Acrysil exports to over 55 countries and plan to expand further by acquiring newer customers and penetrating in newer geographies. Exports business as on 31 March 2020 stood at Rs 157 crore, contributing 73% of the total revenue. The total capital expenditure envisaged is approximately Rs 15 crore. The expansion project is likely to be commissioned by March 2021. The capex will be financed largely by internal accruals.

Commenting on the above, Chirag Parekh, chairman & MD of Acrysil said, "The company is seeing good traction in its export order book on the back of increased demand for home improvement products. In order to meet these incremental demands, company is planning to expand its manufacturing capacity of Quartz Kitchen sinks by 20% i.e. by 1,00,000 units p.a. to 6,00,000 units p.a. by March 2021. We will invest Rs. 15 crores approx. from internal accruals. Export Segment forms around 75% of our business and continues to grow even in these challenging times. Our effort in this segment is to widen our spread across different geography around the world. At Acrysil we are continuously striving to strengthen our product offerings with introduction of new models and variants. We constantly try to enhance our brand awareness by increasing our market presence. We continue to remain optimistic about the global and domestic opportunities and are confident of capturing the same with additional capacity to come on stream."

Acrysil was incorporated in 1987 and is engaged in manufacturing of Composite Quartz Sinks. The company started its operations with help of technical collaboration with Schock & Co. of Germany and one of the largest manufacturers of Quartz Sink in Asia.

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