Kaka Industries jumps on commissioning Gujarat manufacturing facility

Kaka Industries saored 7.11% to Rs 302 after the company successfully commissioned its advanced manufacturing facility in Village Lasundra, Gujarat.

The milestone comes after successfully resolving a persistent power supply issue that had limited the plants operational capacity for the past six months.

The facility spans an impressive total land area of approximately 8,00,000 square feet, with 4,00,000 square feet dedicated to constructed and under-construction zones. Designed to deliver a remarkable capacity utilization of 40,000 metric tons per annum (MTPA), the plants output will exceed the current capacity utilization of 18,000 MTPA by more than 120% over the next 2 to 3 years, it added.

 

Earlier, the plant faced significant challenges due to inconsistent power supply over the last six months. However, with effect from 2nd Jan 2025, Kaka Industries has started using uninterrupted power supply from Madhya Gujarat Vij Company (MGVCL).

Additionally, the power line infrastructure has been completed. With this issue resolved, the plant is poised to operate at full capacity, marking a new era of productivity and efficiency for the company.

CA Chintan Bodar, CFO, Kaka Industries, stated, We are thrilled to announce the full commissioning of operations at our state-of-the-art manufacturing plant in Gujarat, and we expect the turnover of the company to double by the end of FY 2027. The lack of uninterrupted power supply was impacting our operations, which have now been resolved with immediate effect.

All the equipment from other ancillary plants (old units) has now been shifted to this new facility, which will allow us to go full steam ahead and reach utilisation levels of 40,000 MTPA eventually versus 18,000 MTPA at present. This will allow us to double our revenue over the next 2 years, with the potential to reach 120% utilisation levels in the next 2-3 years. This state-of-the-art facility will improve economies of scale and will also reduce the operational cost, and thereby will also improve the margins of the company.

Kaka Industries is a leading player in the polymer industry, known for its commitment to quality, innovation, and sustainability. With a diverse range of polymer products, the company serves various industries and aims to provide cutting-edge solutions to meet evolving market demands.

The company reported marginally increased in standalone net profit to Rs 6.51 crore on 8.98% rise in revenue from operations to Rs 95.44 crore in Q2 FY25 over Q2 FY24.

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