Ambika Cotton Mills Limited has submitted a regulatory disclosure categorized as a "General Business Update" under Regulation 30 of SEBI LODR. The disclosure pertains to information exchanged during an interaction with CRISIL Ltd for rating purposes.
The company reported on its ongoing capacity expansion and modernization plans:
Completed Expansion:
- An expansion of 6048 spindles has already become operational.
Near-Term Expansion:
- An additional 6480 spindles are nearing completion.
- The total cost for both expansions (6048 + 6480 spindles) was ₹50 Crores.
- This expenditure was fully met from internal accruals.
Future Modernization Plan:
- The company proposes to modernize its existing 43,000 spindles of Unit IV to 45,000 spindles.
- The modernization will involve state-of-the-art machinery.
- The estimated cost for this modernization is ₹135 Crores.
- This expenditure will also be met entirely from internal accruals.
Operational Impact:
The disclosed measures are expected to strengthen the company's production base, leading to higher productivity and better quality.
Implementation Timeline:
- The modernization project is scheduled to commence in November 2026.
- The project is expected to be completed during March 2027.
The company has requested that this information be taken on record.