Shreedhar Spinners Approves 20% Capacity Expansion with ₹45 Crore Investment
Shreedhar Spinners Limited has announced a major expansion of its cotton yarn manufacturing business by approving a 20% increase in production capacity. The decision was approved by the company’s Board of Directors at its meeting held on August 4, 2026.
Manufacturing Capacity to Reach 12,000 MT Per Year
The company plans to increase its cotton yarn manufacturing capacity from 10,000 metric tonnes (MT) per annum to 12,000 MT per annum, adding 2,000 MT of annual production capacity.
The expansion will be achieved through the installation of additional plant and machinery along with the upgradation of the existing manufacturing infrastructure. The project will complete the company’s second manufacturing unit.
₹45 Crore Investment Planned
Shreedhar Spinners will invest approximately ₹45 crore in the expansion project. The investment will be financed through a combination of internal accruals and debt.
The additional capacity is expected to be commissioned by Q2 of FY2027-28.
High Capacity Utilisation Drives Expansion
The company’s existing manufacturing facility is operating at around 95% capacity utilisation, indicating strong demand for its cotton yarn products. The planned expansion aims to meet this growing demand while improving operational efficiency.
Focus on Maharashtra and North India
According to the company, the increased production capacity will help strengthen its presence in Maharashtra, while also supporting expansion into North Indian markets. This aligns with Shreedhar Spinners’ long-term growth strategy of increasing its market footprint.
Key Highlights
- Existing capacity: 10,000 MT per annum
- Capacity utilization: Approximately 95%
- Proposed addition: 2,000 MT per annum
- New total capacity: 12,000 MT per annum
- Investment: ₹45 crore
- Funding: Internal accruals and debt
- Expected commissioning: Q2 FY2027-28
- Expansion objective: Meet growing demand, improve efficiency, and expand presence in Maharashtra and North India.
Shreedhar Spinners’ decision to expand production capacity reflects strong demand for its products and confidence in future growth. With a ₹45 crore investment and a 20% increase in manufacturing capacity, the company is positioning itself to serve a larger customer base, improve operational efficiencies, and strengthen its presence in key domestic markets.