SRF board approves capacity expansion in BOPP films

The Delhi headquartered chemical and polymer manufacturer, SRF Ltd., stated after market hours on Monday, that its board has approved the expansion for setting up a BOPP film line in Thailand.

The company has released a press note on stock exchanges, discussing the approval for expansion. The estimated cost of the project is Rs. 350 crores. The expansion aims to provide an added guidance to the company in the South East Asian region, which will help in offering sustainable solutions to customers in BOPET and BOPP. It will also strengthen SRF’s presence in the growing South East Asian region as a credible and long term packaging films producer. The expansion project has been approved by the company's Board of Directors in a meeting, held on November 04, 2019.

The proposed capacity addition is 45,000 MTPA. The period, within which the proposed capacity is to be added, is by the end of second quarter of FY21. The project will be funded with the mix of internal accrual and debt.

On Tuesday, the stock opened higher by more than 4 per cent in early trades. At 11.00 am it traded at Rs. 2,945 on BSE, up by 0.63 per cent.