Isgec Heavy Engineering Ltd. has announced a strategic capacity addition initiative aimed at strengthening its manufacturing capabilities and supporting anticipated growth in key industrial segments. The expansion reflects the company’s long-term outlook and its focus on improving operational efficiency, especially in the Skids & Modules business.
Existing Manufacturing Capacity
At present, Isgec operates a common manufacturing facility at its Rattangarh plant, which is used for producing both Boiler Tubular Pressure Parts and Skids & Modules. Since the same facility caters to multiple product lines, the annual production capacity varies depending on the product mix and customer orders.
Currently, the plant’s output ranges between 8,000 and 13,000 metric tons per annum, offering flexibility but also creating capacity constraints as demand grows.
Details of the Planned Capacity Addition
To address these challenges and prepare for higher demand, Isgec has planned a structured expansion:
Additional Capacity: Approximately 6,000 metric tons per annum
Project Timeline: Expected completion within 2.5 years
Dedicated Manufacturing Unit: The company plans to establish a separate facility exclusively for Skids & Modules, moving away from the shared production setup
This dedicated facility is expected to streamline workflows and reduce operational bottlenecks.
Investment and Growth Rationale
The total investment for the capacity expansion is estimated at ₹87 crore. Importantly, the company intends to fund the project entirely through internal accruals, indicating financial strength and a conservative approach to capital allocation.
The key driver behind this investment is the management’s expectation of significant growth in the Skids & Modules segment. By creating a specialized manufacturing unit, Isgec aims to enhance efficiency, improve delivery timelines, and better serve rising customer demand.
Regulatory Disclosure
In line with regulatory requirements, Isgec disclosed this capacity addition to the National Stock Exchange of India Limited (NSE) in January 2026. Such disclosures are mandated under SEBI (Listing Obligations and Disclosure Requirements) Regulations, ensuring transparency for investors regarding major capital expenditure plans.
