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| Exchange Disseminated Time | Blue Star Ltd has informed BSE that with a view to strengthen its manufacturing footprint, the Board at its meeting held on January 29, 2016 has approved the proposal of setting up two new manufacturing units, one at Samba in the State of Jammu & Kashmir and another at Sri City in Andhra Pradesh.
The details as required under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Regulations") have been mentioned herein below:
a. Existing capacity (Room Airconditioners, Deep Freezers and Water Coolers): approximately 7,11,000
b. Existing Capacity Utilization (Room Airconditioners, Deep Freezers and Water Coolers): approximately 50%
c. Proposed Capacity Addition (Room Airconditioners, Deep Freezers and Water Coolers): approximately 11,11,000
d. Period within which proposed capacity to be added: 3 to 4 years
e. Investment required: Rs. 215 Crores
f. Mode of financing: Borrowings and internal accruals
g. Rationale:
The Company needs significant enhancement in its existing manufacturing capacity to cater to the increasing demand in domestic and export markets.
In this regard, it is proposed to set up a plant at Samba in the State of Jammu & Kashmir, which would enable the Company to avail of the excise duty exemption for a period of 10 years from the commencement of production. Additionally, it is proposed to set up a plant at Sri City in Andhra Pradesh, which would lead to considerable savings in logistics cost apart from availing State GST benefits. It would also de-risk the products business due to spread of manufacturing footprint in two different states. |
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