BLS Polymers plans 148% Goa capacity rise to 87,301 MTPA

BLS Polymers plans to increase installed capacity at its Goa manufacturing facility by 52,050 metric tonnes per annum (MTPA), or about 148%, to 87,301 MTPA by Fiscal 2028. The expansion is for polyethylene (PE) and cross-linked polyethylene (XLPE) compounds, while BLS Polymers is phasing out polyvinyl chloride (PVC) manufacturing after PVC utilisation was 11.79% in Fiscal 2026.

Why is BLS Polymers expanding Goa compound capacity?

BLS Polymers is expanding because PE and XLPE capacity utilisation was 75.26% and 73.19%, respectively, in Fiscal 2026. The company makes custom-formulated polymer compounds used for insulation, sheathing and jacketing of power, telecommunications and railway cables, and for protective coating of oil, gas and water pipelines.

PE was the larger production base in Fiscal 2026, with 18,448 metric tonnes (MT) produced from installed capacity of 24,511 MTPA. XLPE and related products produced 4,233 MT from 5,783 MTPA. In the three months ended June 30, 2026, which was not annualised, PE production was 5,503 MT against 6,128 MTPA of capacity and XLPE-related production was 944 MT against 1,446 MTPA.

BLS Polymers also cites a service agreement with a United Arab Emirates marketing and distribution company for advisory and support services in Egypt, the United Arab Emirates, Saudi Arabia, Bahrain, Kuwait, Oman and Qatar. The agreement does not disclose committed orders, so demand from this arrangement depends on orders being received and the company’s ability to meet specified delivery periods.

What will BLS Polymers' Goa capacity expansion add?

BLS Polymers' Goa capacity expansion will add 29,192 MTPA of PE capacity and 22,858 MTPA of XLPE capacity. PE capacity is planned to rise to 53,703 MTPA from 24,511 MTPA, while XLPE capacity is planned to rise to 28,641 MTPA from 5,783 MTPA. Commercial production from all proposed machines is scheduled for March 2028.

The 87,301 MTPA figure is installed capacity rather than a production forecast. The Goa State Pollution Control Board's January 23, 2026 consent to establish permits aggregate capacity of 7,300 metric tonnes per month, including 4,100 metric tonnes per month of added capacity, equivalent to 87,600 MTPA. BLS Polymers says production is proposed to remain at 38,394 MTPA as of March 31, 2028, compared with 23,265 MT in Fiscal 2026.

PVC shows why installed capacity and production strategy differ. BLS Polymers retains 4,957 MTPA of PVC capacity in its post-expansion table but says it is phasing out PVC manufacturing. PVC output was 584 MT in Fiscal 2026, compared with 465 MT in Fiscal 2025, while utilisation rose to 11.79% from 9.34%; output then fell to 4 MT, or 0.32% utilisation, in the three months ended June 30, 2026. The planned addition is therefore entirely in PE and XLPE.

How much will BLS Polymers spend on the project?

BLS Polymers estimates the Goa expansion will cost Rs 77.56 crore, excluding goods and services tax, installation charges and consultancy expenses where applicable. Its board approved the proposed funding on September 24, 2026. The estimate is based on management estimates, vendor quotations and an October 16, 2026 certificate from an independent chartered engineer, and has not been appraised by a bank or financial institution.

The project is planned on about 5,748 square metres of unused land within the Goa facility, which occupies about 24,220 square metres and has 9,637.22 square metres of constructed area. No proceeds are proposed for land acquisition. The civil scope includes a proposed 7,912.08-square-metre reinforced-concrete G+2 building, storage areas, utilities, roofing and road works.

Equipment procurement remains incomplete. BLS Polymers had placed orders for one XLPE compounding machine costing Rs 3.69 crore and one PE compounding machine costing Rs 6.82 crore. Three further machines, comprising one XLPE line and two PE lines, had not been ordered; the company states that orders worth up to Rs 4.81 crore, or 13.89% of total plant-and-machinery costs, had been placed as of August 31, 2026.

What must happen for the capacity plan to proceed on schedule?

BLS Polymers must complete construction, equipment installation and regulatory approvals for commercial production to start in March 2028. Civil and structural work is expected from November 2026 to May 2027, equipment erection and installation from March 2026 to September 2027, and trial runs from February 2027 to February 2028. The timetable is based on management estimates and the expansion certificate.

BLS Polymers has received consent to establish from the Goa State Pollution Control Board. It still expects to apply for building-plan approval from the Goa Industrial Development Corporation, an approved factory layout, consent to operate, a factory licence, a stability certificate and a fire no-objection certificate at the required stages. The company says unanticipated approval delays could extend implementation and deployment of funds.

Operating permissions also limit near-term production. The existing consent to operate dated November 30, 2023 and April 1, 2024 covers 38,400 MTPA, and BLS Polymers says projected utilisation through Fiscal 2028 will remain within that limit. Use of the full 87,301 MTPA installed capacity therefore depends on completing machinery and construction, securing consent to operate after installation, and obtaining demand for the added PE and XLPE lines.

Conclusion

BLS Polymers' proposed Goa project shifts its manufacturing emphasis towards PE and XLPE by adding 52,050 MTPA to a Fiscal 2026 installed base of 35,251 MTPA. The plan contrasts with PVC's declining operating role: PVC produced 584 MT in Fiscal 2026, while PE and XLPE utilisation was 75.26% and 73.19%, respectively. The company's stated March 2028 production level of 38,394 MTPA remains well below the 87,301 MTPA installed-capacity target.

The next disclosed milestones are completion of civil works by May 2027, equipment installation by September 2027, trial runs ending in February 2028 and commercial production in March 2028. Machinery orders that remain unplaced, approvals yet to be sought and orders generated through the United Arab Emirates arrangement are the factors BLS Polymers identifies as capable of affecting the project's timing, costs and use of expanded capacity.