Mitsu Chem Plast announced a significant capacity enhancement of 600 MTPA to its existing operational capacity of 36,000 MTPA during August 2026. According to reports from Business Standard, this expansion represents a substantial increase in the company's production capabilities. The investment required for purchasing the necessary machinery has been estimated at ₹107 crore, which will be funded through a combination of bank finance and internal accruals.
The company's current capacity utilisation stands at 64% for the year ended March 31, 2026, as reported by Business Standard. This utilisation rate indicates room for growth and justifies the company's decision to expand its manufacturing capabilities. The expansion will increase the total operational capacity by approximately 16.7% from the current 36,000 MTPA level.
The ₹107 crore investment will be funded through a strategic combination of bank financing and internal resources, as detailed in the company's announcement. This funding approach suggests the company's confidence in its cash generation capabilities and its ability to manage debt obligations effectively. The expansion represents a significant capital expenditure commitment to support the company's growth strategy.
