R M Drip and Sprinklers Systems Ltd

- Board approved new manufacturing unit in Nashik via Brahmanand Pipes Pvt Ltd. - This unit boosts production capacity by ~50%. - Products include drip irrigation systems, HDPE pipes, telecom pipes, etc. - Financed via promoters' funds, loans, and fresh equity.

🔍 Overview:

The company’s Board approved setting up a new manufacturing unit under Brahmanand Pipes Private Limited in Sinnar District, Nashik, Maharashtra.

📈 Capacity & Production:

• Installed capacity will be about 12,000 metric tonnes annually.
• This represents a 50% increase in overall production capacity.
• Existing capacity utilization is around 90%, indicating high current production levels.

🌾 Product Range:

The new unit will produce a variety of items catering to multiple sectors:

• High-speed drip irrigation systems and equipment
• HDPE pipes for government water supply and irrigation projects
• Drainage and sewerage pipelines
• Telecom pipes and ducts
• Industrial piping solutions
• Mulching paper for modern agriculture
• Specialized micro-irrigation molded products and accessories
• Other value-added agricultural and infrastructure products

💡 Rationale:

• The Government of India reduced GST on many agricultural products to 5%, boosting agricultural sector demand.
• Diversifying product offerings reduces risk from dependency on a limited product range.
• Opportunity to benefit from growth in agricultural modernization, water infrastructure, rural development, telecom and industrial investment.

💰 Financing:

• Funded through a combination of the company's own funds (promoters’ contribution), loans, and fresh equity investment.

⏳ Timeline:

• Land acquisition expected completed by 28th February 2026.
• Construction is planned to finish by the first quarter of FY 2026-27.
• Commercial production is anticipated to start in the second quarter of FY 2026-27.

📊 Perceptions:

• The move can be seen as proactive scaling to capitalize on favorable industry trends.
• Increasing capacity by 50% may indicate confidence in demand growth.
• Diversification of products potentially strengthens market positioning and reduces risk.

Overall, this announcement provides important insight into the company's growth plans and operational scaling, which may be relevant for investors to track.