Mumbai, July 18: Bhansali Engineering Polymers Ltd (BEPL), India’s leading manufacturer of acrylonitrile butadiene styrene (ABS) resins, said it is on track to commission its ₹200 crore debottlenecking and capacity expansion project by September 2026, increasing its annual production capacity by around 33% to 100,000 metric tonnes per annum (MTPA).
The expansion, which is being carried out at the company’s Abu Road plant in Rajasthan and Satnoor facility in Madhya Pradesh, is being funded entirely through internal accruals, allowing the company to remain debt-free while expanding manufacturing capabilities.
The project will raise BEPL’s installed ABS capacity from the current 75,000 MTPA to 100,000 MTPA. The company expects the expanded facilities to achieve optimal utilisation during FY28.
The expansion comes as domestic demand for ABS—a key engineering plastic used in automobiles, consumer durables, electronics, healthcare products and kitchenware—continues to grow. BEPL believes the additional capacity will strengthen its position in a market where nearly 30-40% of India’s ABS requirement is currently met through imports.
The debottlenecking programme involves upgrading existing production assets rather than constructing an entirely new manufacturing facility, enabling the company to add capacity with lower capital intensity while improving operating efficiencies.
Management said the expansion is aimed at reinforcing BEPL’s position as one of India’s lowest-cost ABS producers while enabling it to cater to rising domestic demand and expand its presence in higher-margin specialty polymer grades.
The project is also aligned with the company’s ongoing efforts to improve product mix through research and development, with a greater focus on specialty and coloured ABS grades that typically command better margins than commodity products.
Alongside the capacity expansion, BEPL reported a strong start to FY27. Revenue for the June quarter rose 50.9% year-on-year to ₹481.9 crore, while EBITDA increased 44.5% to ₹92.3 crore. Profit after tax climbed 42.9% to ₹65.6 crore.
The company said healthy operating cash flows have enabled it to finance the entire expansion programme internally without taking on debt.
According to the company, expanding capacity without leveraging the balance sheet provides financial flexibility amid an uncertain global macroeconomic and geopolitical environment while positioning it to capitalise on long-term growth in engineering plastics demand.
BEPL manufactures ABS and other styrenic resins from its manufacturing facilities in Rajasthan and Madhya Pradesh. The company supplies polymers to sectors including automobiles, consumer electronics, household appliances, healthcare products and industrial applications, and also operates a strategic joint venture with Japan’s Nippon A&L Inc.
With commissioning expected by September, the expanded facilities are expected to enhance domestic availability of ABS resins and help reduce dependence on imports as demand from automotive and consumer goods manufacturers continues to rise.
According to the company, expanding capacity without leveraging the balance sheet provides financial flexibility amid an uncertain global macroeconomic and geopolitical environment while positioning it to capitalise on long-term growth in engineering plastics demand.
BEPL manufactures ABS and other styrenic resins from its manufacturing facilities in Rajasthan and Madhya Pradesh. The company supplies polymers to sectors including automobiles, consumer electronics, household appliances, healthcare products and industrial applications, and also operates a strategic joint venture with Japan’s Nippon A&L Inc.
With commissioning expected by September, the expanded facilities are expected to enhance domestic availability of ABS resins and help reduce dependence on imports as demand from automotive and consumer goods manufacturers continues to rise.