Capacity Expansion
SRF Commissions First Phase of BOPP Film Project at Indore
NSE
srf
BSE
503806
SRF Limited has announced the commissioning and capitalization of the first phase of its Capacity Grade BOPP Film manufacturing project at Indore. The first phase has been capitalized at an approximate cost of ₹277 crore, while the second phase is expected to be completed by September 2026.
PRICE-SENSITIVE TRIGGER
Event: Commissioning of first phase of BOPP Film manufacturing facility at Indore.
Type: Capacity Expansion
Impact: Positive
Immediate Effect: The commissioning strengthens SRF’s manufacturing capabilities in the packaging films segment and supports future production growth.
Key Metrics:
- First phase project capitalization: ₹277 crore
- Expected second phase capitalization: ₹6 crore
- Second phase expected timeline: September 2026
Highlight Metric:
- Major Capacity Expansion Commissioned: SRF has operationalized and capitalized the first phase of its BOPP film manufacturing project in Indore at a cost of nearly ₹277 crore.
What Happened ?
SRF Limited informed stock exchanges that the first phase of its Capacity Grade BOPP Film line project at Indore has been successfully commissioned and capitalized on May 15, 2026.
The project was originally approved by the company’s Board in October 2023. The company also stated that the second phase of the project is expected to be capitalized in September 2026.
Key Details
Project Update:
- First phase of BOPP Film manufacturing line commissioned
- Facility located at Indore
- Project approved by Board on October 27, 2023
- Capitalized on May 15, 2026
Expansion Significance:
- Enhances SRF’s packaging film manufacturing capacity
- Supports long-term growth in specialty and industrial films
- Strengthens production infrastructure in the BOPP segment
Upcoming Phase:
- Second phase expected to be capitalized by September 2026
- Estimated additional investment: ₹6 crore
Additional Note:
- The commissioning reflects continued capital expenditure execution by SRF in its specialty materials and packaging films business.
Risk Analysis
Key Risks:
- Packaging film demand cycles may impact utilization
- Margin pressure from raw material price volatility
- Delay risk in second phase completion
- Competitive pressure in BOPP film markets
Worst Case Scenario:
- Lower-than-expected utilization or weak market demand could delay returns on the newly commissioned investment.
Risk Level: Low to Medium
Company Commentary
- SRF confirmed successful commissioning and capitalization of the first project phase
- Management stated the first phase was capitalized at approximately ₹277 crore
- The second phase is targeted for capitalization by September 2026
Official Exchange Filing: SRF Limited