RMDRIP Approves ~50% Capacity Expansion with New Manufacturing Facility in Maharashtra
RM Drip and Sprinklers Systems Limited (NSE: RMDRIP) announced a major manufacturing expansion that will increase the Company’s overall production capacity by approximately 50%, marking a decisive step in scaling operations, strengthening market positioning, and unlocking long-term shareholder value.
The Board of Directors has approved the establishment of a new, state-of-the-art manufacturing facility through Brahmanand Pipes Private Limited, proposed wholly owned subsidiary, at Sinnar, District Nashik, Maharashtra. The new unit will have an installed capacity of approximately 12,000 metric tonnes per annum, significantly enhancing RMDRIP’s manufacturing footprint.
This expansion is strategically aligned to support higher order inflows across irrigation, infrastructure, and industrial segments, enable an approximately 50% increase in overall manufacturing capacity, improve asset utilization, operating leverage, and margin profile, take advantage of GST reduction done by the Government of India’s in the agriculture sector, and strengthen competitiveness in large government and institutional projects.
The new facility will manufacture a broad range of products addressing multiple high-growth end markets, including high-speed drip irrigation systems and equipment, HDPE pipes for government water supply and irrigation projects, drainage and sewerage pipelines, telecom pipes and ducts, industrial piping solutions, mulching paper for modern agriculture, specialized micro-irrigation moulded products and accessories, and other value-added agricultural and infrastructure products.
This diversification meaningfully reduces product concentration risk while positioning RMDRIP to benefit from strong structural tailwinds in agricultural modernization, water infrastructure, rural development, telecom expansion, and industrial capex.
Execution on Track with Focus on Efficiency and Returns
Management Commentary
Commenting on the expansion, Mr. Nivrutti Pandurang Kedar, Promoter and Managing Director, said, “This capacity expansion is a pivotal milestone in RMDRIP’s growth strategy. By increasing our manufacturing capacity by nearly 50%, we are building the foundation for sustained revenue growth, improved margins, and stronger execution capabilities. The new facility allows us to address multiple high-growth sectors while improving operating leverage and long-term returns for shareholders. We remain confident about demand visibility driven by government infrastructure spending and agricultural modernization.”
Strengthening Long-Term Growth Visibility
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