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High-Speed Hype: How ₹25.8M of New Gear Will Supercharge Srivasavi


Updated: June 13, 2025 16:13

Image Source: IPOHUB
Srivasavi Adhesive Tapes Ltd has just greenlit a ₹25.8 million capital expenditure to acquire two new highspeed BOPP slitting and coating machines, reinforcing its leadership in specialty selfadhesive tapes. The acquisition, approved by the Board on June 12, will be fully funded through internal accruals and is slated for commissioning by September 2025.
 
Key Highlights:
  • Investment Size: ₹25.8 million for two automated production lines
  • Machinery Specs: Latestgen slitterrewinder and precision coating unit
  • Capacity Uplift: 30% surge in monthly output—from 150 MT to 195 MT
  • Quality Edge: Tighter gauge tolerance ensures superior adhesion performance
  • Funding Structure: Zero debt, leveraging cash flows and internal reserves
  • Timeline: Delivery by August; installation & trials complete by endQ3 FY26
  • Margin Impact: Estimated 8% EBITDA boost from enhanced economies of scale
This strategic outlay dovetails with Srivasavi’s vision to capture rising demand across automotive, electronics and packaging sectors. By automating critical processes, the company anticipates not only higher throughput but also lower wastage—translating to sharper pricing power and stronger gross margins. Management highlighted that this expansion underpins their “Make in India” ethos, ensuring domestic clients benefit from faster turnarounds and bespoke tape solutions.
 
Market reception has been upbeat: Srivasavi’s share price climbed 4% in intraday trade, reflecting investor confidence in its disciplined growth trajectory. Analysts note that with negligible debt on the books and a track record of robust profit reinvestment, Srivasavi is wellpositioned to outpace peers in the next financial year.
 
Source: BSE filing; Moneycontro

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