Page 6 - Capex

Capex till 2030-31 could be Rs 1.25 trn on product expansion: Maruti Suzuki

Maruti Suzuki India's capex till 2030-31 could be around Rs 1.25 lakh crore as it plans to enhance product range to 28 models from 17 currently and expand production capacity, according to a regulatory filing. The country's largest carmaker is lining up capex to expand its total production capacity to 40 lakh units per annum by 2030-31. "The regular capex in the existing plants at Gurgaon, Manesar and Gujarat will continue. The amount in 2022-23 was around Rs 7,500 crore. Total capex till 2030-31 could be as much as Rs 1.25 lakh crore," Maruti Suzuki India (MSI) said. In a presentation for shareholders, analysts and proxy advisors, the auto major stated that it will need about Rs 45,000 crore to create a capacity of 20 lakh units. This is based on current costs and a small amount for cost escalation, it noted. Elaborating on the benefits of issuing shares on a preferential basis to Suzuki Motor Corporation (SMC) rather than utilising cash for the acquisition of Suzuki Motor Gujar

Schneider Electric lines up Rs 3,200 cr capex by 2026: CEO, MD Sharma

Schneider Electric India has lined up an investment of Rs 3,200 crore by 2026 to increase its footprint in the country, company's CEO & MD Deepak Sharma said. The investments will be made in nine states, Sharma who is also the President Greater India region told PTI in an interaction. "In line with our growth ambitions, we have plans to invest EUR 350 million (Rs 3,200 crore) in expanding our industrial footprint with the addition of 12,00,000 square feet up to 2026. These investments are spread over Gujarat, Telangana, Karnataka, West Bengal, Odisha, Tamil Nadu, Maharashtra, Himachal Pradesh, and Uttarakhand," Sharma said. When asked if the investments include setting up of green capacities, he said Schneider Electric aims to become net-zero in its operations by 2030, end-to-end carbon neutral value chain by 2040, and net-zero CO2 emissions across its entire value chain by 2050. "Our company is managing over 700 MW of renewable energy power purchase agreements and providing ...

Capex by large CPSEs touches 42.5% of budget target in April-August

NHAI and Railways drive robust growth in capex

Corporate capital expenditure fell two quarters in a row, says report

A slowdown in fresh investments has resulted in a steady decline in the contribution of the corporate sector to overall capex and its share in GPD

Coal India to invest Rs 24,750 crore in 61 eco-friendly projects

CIL in 2021 had planned 35 FMC projects with a capacity of 414.5 MTPA. Out of these, currently 8 FMC projects of 112 MTPA capacity are already operational

Confident of meeting fiscal deficit, nominal GDP targets: DEA secy

Govt keeping a close watch on some sectors for supply side measures to tame inflation

Steelbird lines up Rs 105 cr capex to ramp up production capacity

Steelbird Hi-Tech India on Friday said it plans to invest Rs 105 crore to enhance production capacity at existing plants as ait aims to roll out 1 crore helmets in the current fiscal. The company will utilise the capital for capacity expansion in its plants based in Baddi (Himachal Pradesh) and Noida (Uttar Pradesh). "Our aspiration to produce 10 million helmets signifies our unwavering commitment to riders globally. With ECE-certified helmets, we're not only upholding stringent safety standards but also advancing towards global dominance," Steelbird Hi-Tech India Managing Director Rajeev Kapur said in a statement. The company has allocated a capex of Rs 105 crore to fuel the ongoing expansions to expand manufacturing capacities in existing plants, he said. Kapur noted that Steelbird is looking to capture a significant share of the European and American helmet markets, besides consolidating its position in the domestic market. With the helmet industry projected to witness remarkab

India at cusp of new pvt capex cycle as states bag investments: Report

The Indian economy is at the cusp of a new private capital expenditure cycle, a domestic credit rating agency said on Thursday. After analysing official data from 2005 to 2022, India Ratings and Research said Uttar Pradesh, Gujarat and Maharashtra continue to dominate fresh capex allocation, while Odisha is getting attention with projects spread across textile, steel and power sectors. For the past few years, the government led on the investment front while private capital expenditure, which has a trickle-down effect on growth and employment, did not take off. "Analysis of Industrial Entrepreneur's Memorandum (IEM) and Business Expectation Index (BEI) data of 2005 to 2022 shows that the Indian economy is at the cusp of a new private corporate capex cycle," the rating agency said in a note. The IEM data is collected by the government's Department for Promotion of Industry and Internal Trade, while data related to BEI is released by the Reserve Bank of India (RBI) in its industrial .

Road, renewables capex likely to rise by 35% in FY24 & FY25: CRISIL

The total capital outlay for roads and renewables in 2023-24 and 2024-25 is likely to jump by 35 per cent to Rs 13 lakh crore compared to that in the last two fiscal years, according to a report. Conducive policies, rising investor interest and strong execution speed are expected to drive the capital outlay in the sectors, the report by Crisil Ratings said on Tuesday. The pace of road construction and capacity addition in renewables is seen growing by 25 per cent and 33 per cent, respectively, in the current and next fiscal, and the capex growth is expected to sustain over the medium term, the report said. Crisil Ratings Managing Director Gurpreet Chhatwal said the pace of execution of renewable energy projects is set to increase 33 per cent to 20 GW per annum over the current and next fiscal as compared to 15 GW per annum in the past two fiscal years, supported by a healthy executable pipeline of 50 GW of projects as of March 2023. Similarly, road construction is set to improve 25

Saint-Gobian India investing Rs 8,000 crore to meet growth targets

Saint Gobian India, a leading glass maker and a player in housing solutions business, is investing Rs 8,000 crore in 4-5 years to fund capital expenditure and acquisitions to fuel growth, its chief B Santhanam said. The company, which recently acquired stone wool manufacturer Rockwool India and glass wool maker Twiga still has an appetite for inorganic growth here. Saint Gobian India, a subsidiary of the French glassmaker, expects around 10 per cent volume and mix-led growth from the Indian market, where it is witnessing a demand surge. "Saint-Gobain India is performing very well in India in terms of growth, profitability, expansion, sustainability, digital and people talent. All our businesses be it in building and construction or industrial solutions are performing well," Saint Gobian CEO of Asia Pacific and India region and Chairman, Saint-Gobain India, Santhanam told PTI. "We are close to the annualised rate of Rs 13,200 crore... Comparing FY24 to FY23 we will be 8-10 per cent

GAIL to invest Rs 30,000 cr in next 3 years, scouts for LNG supplies abroad

India's top gas firm GAIL (India) Ltd plans to invest Rs 30,000 crore in the next three years as it expands petrochemical capacity and scouts for LNG supplies globally, its chairman Sandeep Kumar Gupta said on Wednesday. The nation's top gas marketing and transportation firm is looking at liquefied natural gas (LNG) as a transport fuel, joining Essar-promoted GreenLine which operates the nation's largest LNG-powered fleet of heavy commercial vehicles. Speaking at the company's annual shareholders meeting, Gupta said the firm had a Rs 10,000 crore capex in the 2022-23 fiscal (April 2022 to March 2023). "The company is growing steadily and creating infrastructure facilities across the nation. We are targeting to incur a capex Rs 30,000 Crore in the next three years, mainly on pipelines, ongoing petrochemical Projects, CGD projects, operational capex, equity contribution in group companies etc," he said. With 15,600 kilometres of pipelines under operation and about 4,200 km of pipelin

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Investment cycle gaining momentum, envisaged capex to jump over 80%: RBI

Investment activity is gaining momentum and the envisaged capital expenditure is set to jump by over 80 per cent to Rs 1.71 lakh crore in the current fiscal, according to an article by Reserve Bank of India (RBI) staffers. The article by Shreya Bhan, Rajendra N Chavhan and Rajesh B Kavediya, which was published on Thursday, said improvement in capacity utilisation of the manufacturing sector, pick-up in credit demand and improving consumer sentiments are helping the capex cycle. Cleaning up of balance sheets by both corporates and banks makes room for upping lending activities, the article, which draws from the RBI's data from banks, The paper does not represent the official position of the central bank. "The phasing profile of the envisaged capex, based on the pipeline projects finance... suggests that the envisaged capex increased significantly to Rs 1,71,568 crore in 2023-24 as against Rs 94,876 crore in 2022-23," the article said. In 2022-23 (FY23), infrastructure -- including

Coal India capex spending grows 8.5% to Rs 4,700 cr in Apr-Jul: Officials

Coal India Ltd's capital expenditure rose 8.5 per cent during April-July this fiscal to Rs 4,700 crore as it continued to invest heavily in evacuation infrastructure, land, and mining machinery, officials said. The capex spend during the first four months of the current fiscal year that started in April, was almost 100 per cent of the target of Rs 4,754 crore and 28.3 per cent of the annual target of Rs 16,600 crore (for 2023-24 fiscal), they said. Typically, the capex starts slow in the first quarter with the company laying out the expenditure plans at the beginning of the fiscal and gradually builds up in the subsequent quarters. What makes the 8.5 per cent capex growth in April-July FY24 significant was it came over a high base of Rs 4,332 crore of same period in FY2023, the year when CIL's capex peaked to an all-time high of Rs 18,619 crore. "At a time when the government has been directing the central public sector units to scale up their capital expenditure for economic reviv

Telecom sector to see 7-9% revenue growth, Rs 70,000 cr capex in FY24: ICRA

The telecom services industry is expected to post moderate revenue growth of 7-9 per cent in FY 24, due to muted average revenue per user (ARPU) expansion in the absence of tariff hikes in the near-term, ICRA said. The industry has been "upfronting" 5G capex (capital expenditure) and ICRA foresees sectoral capex at around Rs 70,000 crore for FY2024, within an overall spend of around Rs 3 lakh crore over the next 4-5 years. ICRA believes that the ongoing 5G roll-out entails densification of the network and sizable deployment of fibre, which is likely to increase the capex intensity in the near to medium term. This would keep debt levels elevated at around Rs 6.1-6.2 lakh crore as on March 2024 (as against Rs 6.3 lakh crore as on March 31, 2023). "ICRA expects the telecom services industry to report moderate revenue growth of around 7-9 per cent in FY2024 over FY2023, owing to muted average revenue per user (ARPU) expansion in the absence of tariff hikes in the near-term," ICRA said

Insecticides India to invest Rs 150 cr in next 2 yrs on capacity expansion

Insecticides India Ltd (IIL) Managing Director Rajesh Aggarwal on Sunday said the company will invest Rs 150 crore in the next two years on capacity expansion in Rajasthan and Gujarat, and also launch new herbicide and insecticide products before 'Navratri'. Speaking to PTI, Aggarwal said the company will invest about Rs 100 crore for setting up of a new plant at Sotanala in Behror district of Rajasthan, in the next two years. "Last week, we acquired 15-acre plant at Sotanala in Behror district. Lot of sheds are already there and we plan to manufacture agro-chemicals. We will invest about Rs 100 crore investment here in the next two years," he said. The plant will be implemented in phases and the work might commence by year-end, he said adding this is a second plant in Rajasthan and the other one is located at Chopanki which is up and functioning. Aggarwal further said the company will invest Rs 25 crore in the next fiscal for expansion of its SEZ plant located in Dahej, Gujarat an

India's improved monsoon performance, capex augur well: FinMin report

India's improved monsoon performance, continued expansion in manufacturing, and vigorous capital expenditure spending by the public and private sectors augur well for macroeconomic stability and growth during FY24, the finance ministry said in a report. However, it cautioned that cross-border spillovers and adverse global developments can act anytime as a deterrent to achieving the potential high growth path in the current financial year. The government's emphasis on capex in recent years has given a much-needed thrust to investments in key infrastructure, which has resulted in crowding in of private investment to kickstart the virtuous circle of job creation, income, productivity, demand, and exports supported by favourable demographic dividend over the coming years, said the June edition of the Finance Ministry's Monthly Economic Review. As per Axis Bank Business and Economic Research, Capex by the Corporate sector increased by 22.4 per cent in FY23 compared to the last year, driv

Peerless Group to invest Rs 1,000 cr in capex; focuses on hospital, realty

The Peerless Group on Monday announced ambitious plans to invest over Rs 1,000 crore in capital expenditure over the next three years, a major portion of which will be channelled into the development of hospital and real estate projects. In the financial year 2022-23, the Peerless Group reported a revenue of Rs 635 crore from operations. This notable increase of 22 per cent over the previous fiscal's revenue of Rs 520 crore has been seen as a successful outcome of the company's transformation efforts undertaken last year, the company said. "While transformation is a long journey, during the last year, we have seen early results. Before Covid, our annual growth rate of revenue for the entire group used to be around 6 per cent. During FY23, we have been able to shift the growth rate to 22 per cent," said Peerless Chairman Partha Bhattacharyya. Profit before tax during FY'23 was Rs 196 crore against Rs 149 crore achieved in FY'22. The group's flagship Peerless General Finance & ...

Ceat lines up Rs 750 cr capex for FY24, says MD & CEO Arnab Banerjee

Tyre maker CEAT Ltd has lined up a capex of around Rs 750 crore for the ongoing fiscal, mostly to be deployed in increasing production capacity of agri-radial tyres at its Ambernath plant in Maharashtra, according to the company MD & CEO Arnab Banerjee. The company expects volume of its supplies to original equipment manufacturers (OEMs) to pick up in the third and fourth quarter of this fiscal, as it completes transition from smaller rim size to bigger sizes, with approvals from automobile manufacturers expected soon. In the replacement market, where CEAT has seen good growth in the first quarter specially in motorcycle tyres, the company expects the momentum to continue although in the rural market which has been dormant for sometime it may take another two more quarters for growth visibility to come. "We have been talking about Rs 700 crore to Rs 750 crore for the year. Out of which around Rs 220 crore we have done in quarter one," Banerjee told PTI. He was responding to a ...

More capex for states

Higher Central funds for states' capital outlay are welcome, but these should lead to additionality