Harsha Engineers International Limited has announced a capital investment of approximately USD 9.94 million in its wholly owned subsidiary, Harsha Precision Bearing Components (China) Co. Ltd (“Harsha China”), to undertake a brownfield expansion project in China.
The expansion will be carried out at Harsha China’s existing manufacturing facility located at Fuhua Road, Bixi Sub-district, Changshu, Jiangsu province. The proposed capital expenditure will be used for infrastructure development as well as the purchase of new plant and machinery.
As part of the project, Harsha China plans to increase its manufacturing capacity by 5.84 million pieces over the next two years. This will take the subsidiary’s total capacity from the current 8.45 million pieces, which is operating at a utilisation level of around 55.6%.
The investment will be funded through a combination of equity infusion from the parent company and term loan financing at the subsidiary level.
According to the company, the expansion is aimed at strengthening its product portfolio in the bearing cage segment and capturing higher growth opportunities in the Chinese market. The move is expected to drive revenue growth and help Harsha China enhance its market share in China, one of the world’s largest bearing manufacturing hubs.
The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
