The total capacity of BEPL is going to almost triple from 48000 TPA to 137000 TPA. The revenue for 2017 is expected to be 1500 cr, also almost triple from the current revenues.
Out of 137000 TPA, 130000 TPA is ABS Resin. The final capacity after expansion is
The total cost of this expansion is 200 crores.
As mentioned earlier in this thread, the demand seems to be growing and the company cant keep up with this demand necessitating the expansion. At 200 crores, the company will definitely need to take up additional debt or issue equity.
This is certainly a good bet. There are ifs and buts about the promoter credentials, so thats a concern. Another concern for me is the capex of 200 crores which will be required to transition to the enhanced capacity. The company currently doesn’t seem to have the necessary internal funds needed so its a risky maneuver to go in for an expansion. This can be good or bad. The management seems to be pretty sure of the demand panning out and hence they have decided to take up the risk ( which is a good thing ). If the management has estimated incorrectly then its going to end up in bad shape. However, i guess the company knows what its doing.