Capacity Expansion / Manufacturing Expansion

Sanstar Commissions Expanded Native Starch Capacity at Dhule Facility; Total Capacity to Reach 2,350 TPD

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Sanstar Limited has commissioned expanded native starch manufacturing capacity at its Dhule facility in Maharashtra, increasing installed capacity significantly as part of its IPO-funded expansion strategy. Total company capacity is set to rise from 1,100 TPD to 2,350 TPD.

PRICE-SENSITIVE TRIGGER

Event: Commissioning of expanded native starch manufacturing capacity

Type: Capacity Expansion / Manufacturing Expansion

Impact: Positive

Immediate Effect: The commissioning strengthens Sanstar’s manufacturing scale, improves operational capabilities, and positions the company for higher domestic and export demand in maize-based specialty products.

Key Metrics:

Existing Total Capacity: 1,100 TPD
Target Total Capacity: 2,350 TPD
Dhule Facility Capacity: 1,250 TPD
IPO Allocation Utilized: Rs. 1,816 million
Kutch Facility Capacity: 350 TPD
Dhule Facility (Existing) Capacity: 750 TPD
Revenue Mix – Food & Personal Care: ~45%
Revenue Mix – Animal Nutrition: ~25%
Revenue Mix – Industrial & Others: ~30%

Highlight:

Label: Expanded Total Manufacturing Capacity
Value: 2,350 TPD

What Happened ?

Sanstar Limited announced the commissioning of expanded native starch manufacturing capacity at its Dhule facility in Maharashtra.

The expansion is part of the company’s broader capacity enhancement initiative funded through IPO proceeds. Following this commissioning, Sanstar’s total installed manufacturing capacity is expected to increase from 1,100 TPD to 2,350 TPD.

The company stated that the Dhule expansion is being implemented in two phases. While native starch capacity has now been commissioned, the derivatives facility is expected to become operational during FY2026-27.

Management highlighted that the Dhule facility’s strategic location near maize-growing regions and ports will support sourcing efficiency, exports, and operational scale benefits.

key highlights

Capacity Expansion and Operational Development:

Sanstar commissioned expanded native starch manufacturing capacity at its Dhule facility in Maharashtra.
The project forms part of the company’s IPO-funded expansion strategy.
The full IPO allocation of Rs. 1,816 million earmarked for Dhule expansion has been utilized.
Total installed capacity is expected to increase from 1,100 TPD to 2,350 TPD.
The Dhule facility’s installed capacity stands at 1,250 TPD.
The Shirpur plant is expected to become one of India’s largest starch manufacturing plants at a single location.
The expansion is being executed in two phases.
Native starch capacity has already been commissioned.
The derivatives manufacturing facility is expected to be commissioned in FY2026-27.
The facility benefits from strategic proximity to maize-growing regions and export infrastructure.
Expanded capacity is expected to improve operational efficiencies and scale benefits.
Sanstar manufactures native starch, modified starch, derivatives products, and co-products for food, pharma, industrial, and animal nutrition applications.
The company serves domestic as well as export markets with maize-based specialty ingredient solutions.

Note:

The commissioning materially enhances Sanstar’s manufacturing scale and strengthens its position in India’s maize-based specialty products market.

Risk Analysis

Key Risks

Ramp-up of expanded capacity may take time before achieving optimal utilization.
Demand fluctuations in food, pharma, industrial, and export markets may impact utilization levels.
Commodity price volatility in maize procurement can affect margins.
Delay in commissioning of derivatives facility could impact expected expansion benefits.
Large-scale manufacturing expansions may temporarily increase operational and working capital requirements.

Worst Case Scenario

Lower-than-expected utilization or delays in downstream derivatives commissioning could impact return ratios and profitability from the expansion project.

Risk Level: Medium

Company Commentary

Management stated that the commissioning marks an important milestone in Sanstar’s growth journey.
The company highlighted that installed crushing capacity has scaled to 1,250 MTPD at Dhule despite originally planning a 1,000 MTPD expansion during the IPO stage.
Sanstar stated that the expansion strengthens manufacturing capabilities and customer servicing capacity across industries.
Management emphasized that the derivatives facility commissioning will support movement toward higher value-added offerings.
The company reiterated focus on leveraging expanded capacity for long-term sustainable growth.

Official Exchange Filing: Sanstar Limited