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Shares of Ingersoll-Rand (India) surged 5 per cent to Rs 1,909 on the BSE in Friday's intra-day trade after the company's board approved setting up of a new manufacturing plant in Gujarat to increase the manufacturing capacity of the existing products and also to manufacture new products.
The company said the project requires an investment of Rs 170 crore (plus contingency of up to a maximum of 7 per cent) and the same would be financed from internal accruals.
The company's existing capacity is 10,000 units per month and the capacity utilization rate is 100 per cent. It proposes to add a capacity of 5,000 units per month initially by the end of September 2024. This would help in catering to demand from domestic as well as export markets.
On rationale behind capacity addition or product launch, the company said that current projects for growth need additional space which the current plant at Naroda cannot fulfil. New plant will not only help secure space for immediate expansion plans but will also fuel future growth prospects, it added.
"The new plant upon becoming fully operational will manufacture new range of air compressors, air treatment devices, hydrogen compressors etc. to cater to the requirement of domestic market as well as export market in Europe, Middle East and Africa regions," Ingersoll-Rand said in a statement.
Ingersoll-Rand (India) manufactures air compressors of various capacities for the domestic and export markets. The company derives revenue from the sale of reciprocating, rotary, and centrifugal compressors and spares in the domestic market, and from exports to its parent and affiliates.
That said, despite today's run-up, the stock price of Ingersoll-Rand has declined 18 per cent in the past one month, as compared to 2.3 per cent fall in the S&P BSE Sensex. However, in the past one year, it has rallied 60 per cent as against 5 per cent rise in the benchmark index.
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First Published: Fri, December 23 2022. 13:23 IST
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