Production Commissioning and Capacity Details
The company has successfully integrated a new tubing machine at its Moti-Bhoyan facility in Gandhinagar, which is now operational for the commercial production of various tube sizes. This move addresses the high utilization levels of its existing infrastructure, which currently operates at 90% of its 7.25 crore tubes-per-month capacity. The additional proposed expansion of 45 lakh tubes monthly will push total output capabilities higher, providing the company with the necessary headroom to fulfill growing order volumes from its primary clients in the FMCG and pharmaceutical sectors.
Strategic Rationale and Execution Timeline
- Consistent demand for packaging products necessitated the immediate expansion of the Lamitube production line
- The ₹10 crore capital expenditure is strategically allocated to tap into growing market opportunities in primary packaging
- Full operational integration of the new capacity is targeted for completion during Q2 FY 2026-27
- Use of latest technology in the new machinery is expected to improve operational efficiency and product quality
Business and Financial Context
Shree Rama Multi-Tech specializes in the manufacturing of Lami-tubes, tube laminates, and multilayer films, positioning itself as a key supplier in the containers and packaging industry. Financial data indicates a trailing twelve-month revenue of ₹239.68 crore, with the company maintaining a strong durability score of 75. While net profit has seen recent pressure, management anticipates that the capacity addition will contribute positively to both the topline and bottomline.
The company currently maintains a promoter holding of 61.57% with zero pledged shares, reflecting stable ownership as it enters this expansion phase.
Operational Impact
Further, commencement of production from the said Tubing Machine will enhance the production capacity in Lamitube and is expected to contribute towards increase in the topline as well as bottomline of the Company in the coming years.
