Informist, Friday, Mar 1, 2024

--Astral CFO: Commercial output from upcoming Hyderabad unit by June

--Astral CFO: Commercial output from upcoming Kanpur unit by Mar 2025

--CONTEXT: Astral putting up new 130,000-tn units in Hyderabad, Kanpur

--Astral CFO: To spend 3 bln rupees on Hyderabad, Kanpur units

--Astral CFO: To fund Hyderabad, Kanpur units via internal accruals

--Astral CFO: Spent 750 mln rupees on Hyderabad, Kanpur units so far

AHMEDABAD – Astral Ltd plans to begin commercial production from its upcoming Hyderabad plant from June, and from its upcoming Kanpur plant by March 2025, company executive director and chief financial officer Hiranand Savlani said.

Astral is setting up a 70,000 tn per annum plant at Hyderabad in Telangana and a 60,000 tn per annum unit at Kanpur in Uttar Pradesh. “The work is on schedule, and we should be able to begin commercial production from Hyderabad by June and Kanpur by March 2025,” Savlani told Informist.

Astral defines its business in two verticals, plumbing and paints being one and adhesives the other. Plumbing includes pipes, fittings, water tanks, faucets, and sanitaryware.

The current installed capacity of the company is around 329,000 tn. Astral also recently began production of water tanks at its 22,000 tn plant at Guwahati, Assam. It began rolling out pipes from this facility in January.

Savlani said work on the first phase of construction of the plant at Hyderabad is almost over and the company plans to begin installing the machinery now. For the Kanpur plant, the company plans to begin construction work shortly.

On the capital expenditure on both plants, Savlani said the company would spend 3 bln rupees. All the investment for these plants would be done through internal accruals, he said, adding that the company has spent 750 mln rupees on the projects till date.

“Initially, both units would begin operating at around 50?pacity,” he said. “The ramp-up would depend on the demand we get.”

At 1459 IST, shares of Astral traded 0.4% higher at 2,077 rupees on the National Stock Exchange. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Sunil Raghu

Edited by Rajeev Pai

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