Scaling Up Sustainably: All Time Plastics Invests Rs 183.3 Million To Expand Khatalwada Capacity By 4,000 MT

All Time Plastics Ltd, one of India’s leading exporters of plastic consumer products, has completed a strategic investment of Rs 183.3 million to expand its manufacturing capacity at the Khatalwada plant in Gujarat. The expansion adds 4,000 metric tons of annual production capability, reinforcing the company’s commitment to scaling operations in response to rising global demand, especially from long-standing export clients like IKEA.

The announcement comes on the heels of a strong Q1 FY26 performance, with the company reporting a 21.5 percent year-on-year revenue growth and maintaining high utilization across its existing facilities. The Khatalwada upgrade is part of a broader roadmap to increase total installed capacity to 52,500 metric tons by FY27.

Key Highlights From The Expansion Initiative

- Rs 183.3 million invested to install new machinery and auxiliary systems  
- 4,000 metric tons of additional capacity commissioned at Khatalwada plant  
- Expansion funded through internal accruals and IPO proceeds  
- Capacity utilization across all plants stands at 89.7 percent  
- Export sales account for 83.6 percent of total revenue, with IKEA contributing 60 percent  

Operational Impact And Production Metrics

The Khatalwada facility, which previously operated at near-maximum capacity, now benefits from upgraded injection moulding lines and enhanced automation. The new units are expected to process an additional 1,000 metric tons per quarter, starting Q3 FY26. This will help ease pressure on the Daman and Silvassa plants, which have also been running at high utilization.

In Q1 FY26 alone, All Time Plastics processed 7,399 metric tons of polymer, up from 5,897 metric tons in the same quarter last year. The company’s current annual capacity now stands at 33,000 metric tons, with the Khatalwada expansion pushing it closer to its FY27 target.

Strategic Rationale And Market Positioning

The Rs 183.3 million investment aligns with All Time Plastics’ strategy to:

- Meet growing export demand from Europe, the UK, and the US  
- Reduce lead times and improve delivery reliability for high-volume clients  
- Diversify product lines with more complex and customized moulds  
- Enhance energy efficiency and reduce per-unit production costs  

The company’s long-standing relationship with IKEA, which contributes approximately 60 percent of export revenue, continues to anchor its global presence. Despite the absence of formal contracts, the partnership has remained stable for over 28 years, underscoring mutual trust and consistent quality.

Financial Performance And Funding Structure

All Time Plastics reported revenue of Rs 158 crore in Q1 FY26, up from Rs 130 crore in Q1 FY25. EBITDA rose 15.6 percent to Rs 29.4 crore, while PAT increased to Rs 12.8 crore. The slight dip in EBITDA margin to 18.5 percent was attributed to initial costs associated with the Khatalwada expansion, which are expected to normalize as utilization improves.

The investment was partially funded through IPO proceeds, with Rs 113.7 crore earmarked for capacity expansion across multiple sites. The company also plans to use Rs 133 crore for equipment procurement at its upcoming Manekpur facility.

Looking Ahead

With the Khatalwada expansion now operational, All Time Plastics is well-positioned to capitalize on festive season demand and new customer acquisitions. The company added 12 new clients in Q1 FY26 and is exploring further automation upgrades to support its sustainability goals.

As global retailers continue to prioritize reliable sourcing and ESG compliance, All Time Plastics’ expanded footprint and proven export credentials offer a competitive edge in the evolving consumer goods landscape.

Sources: ScanX Trade, NDTV Profit, All Time Plastics Investor Updates.