DINOTARIP’s Rs 20.8818 crore plan adds only 2,000 MTPA

DINOTARIP plans Rs 20.8818 crore of capital expenditure on plant and machinery, but the stated initial public offering, or IPO, funded addition is 2,000 metric tonnes per annum, or MTPA, of shade-net capacity. Installed capacity would rise from 12,900 MTPA at March 31, 2026 to 14,900 MTPA, after 6,000 MTPA was added during FY 2025-26.

Why does DINOTARIP’s Rs 20.8818 crore machinery plan add only 2,000 MTPA?

DINOTARIP’s Rs 20.8818 crore capital-expenditure programme combines capacity expansion with equipment intended to widen product specifications and add printing capability. The company states that the IPO-funded expansion will add 2,000 MTPA of shade net within its Consent to Establish, or CTE, consent, taking installed capacity from 12,900 MTPA at March 31, 2026 to 14,900 MTPA after expansion.

The proposed package contains three monolayer blown-film lines, 10 shade-net warp-knitting machines with slitters and one four-colour high-speed printing machine. DINOTARIP does not disclose an individual MTPA contribution for the three film lines, 10 knitting machines or printing line, so the Rs 20.8818 crore outlay cannot be allocated between the stated 2,000-MTPA addition and non-volume capabilities from the available disclosure.

The proposed 2,000-MTPA addition follows an increase of 6,000 MTPA during FY 2025-26, when DINOTARIP commissioned a 3,000-MTPA tarpaulin machine on January 1, 2026 and a 3,000-MTPA shade-net machine on March 2, 2026. The 14,900-MTPA outcome therefore requires commissioning the proposed equipment and retaining production capability from the machinery added during FY 2025-26.

What machinery will DINOTARIP acquire with the capital expenditure?

DINOTARIP will allocate Rs 11.5676 crore, the largest part of the Rs 20.8818 crore budget, to 10 shade-net warp-knitting machines with slitters. Four machines with 12 slitters each are intended to produce nets from 3 feet to 20 feet wide, while six machines with 24 slitters each are intended to produce widths from 3 feet to 30 feet.

The three monolayer blown-film lines are budgeted at Rs 3.2603 crore and the four-colour printing machine at Rs 4.897 crore. DINOTARIP specifies that each film line has a maximum film output of 200 kilograms per hour, while the printing line can print laminated and unlaminated tarpaulin, shade net and woven fabric at up to 100 metres per minute and widths of up to 4,000 millimetres.

DINOTARIP says the knitting machines can make shade nets with weights of 60 to 200 grams per square metre, or GSM, and shading percentages from 30% to 90%. The printing machine is intended to add customised designs, logos and brand imagery across existing product lines, meaning the programme’s operating outcome depends on orders for these specifications as well as production volume.

How does the proposed expansion compare with recent capacity growth?

DINOTARIP’s proposed 2,000-MTPA shade-net addition is smaller than each 3,000-MTPA addition commissioned in FY 2025-26. The January 1, 2026 tarpaulin machine and March 2, 2026 shade-net machine together doubled capacity from 6,900 MTPA at April 1, 2025 to 12,900 MTPA at March 31, 2026.

Capacity had already grown from 4,200 MTPA at March 31, 2024 to 6,900 MTPA at April 1, 2025. That earlier period included a 1,200-MTPA tarpaulin machine commissioned on April 30, 2024 and a 1,500-MTPA shade-net machine commissioned on March 19, 2025; DINOTARIP states that it began its warp-knitted fabric, including shade-net, range in March 2025.

The comparison shows that the proposed IPO-funded step comes after a larger near-term increase in installed machinery. DINOTARIP’s stated rationale includes producing wider nets, more knitting patterns and customised printed products, but the 2,000-MTPA figure is the only disclosed capacity increment for the proposed Rs 20.8818 crore programme.

What does DINOTARIP’s utilisation record indicate?

DINOTARIP reported total production of 6,277 MTPA against installed capacity of 12,900 MTPA at March 31, 2026, producing reported annualised utilisation of 48.66%. The company attributes the lower aggregate percentage to including the annual capacity of two machines that became available only on January 1, 2026 and March 2, 2026.

The 3,000-MTPA tarpaulin machine commissioned on January 1, 2026 produced 564 MTPA over its 90-day reporting period, for annualised utilisation of 76.25%. The 3,000-MTPA shade-net machine commissioned on March 2, 2026 produced 149 MTPA over 29 days, for annualised utilisation of 62.51%.

DINOTARIP separately reported that the 6,900-MTPA capacity available at the start of FY 2025-26 produced 5,564 MTPA, with annualised utilisation of 80.64%. The total March 31, 2026 measure and the opening-capacity measure use different availability periods, so the 48.66% aggregate result incorporates capacity that was not operational for the whole financial year.

How is DINOTARIP funding and implementing the machinery programme?

DINOTARIP intends to fund Rs 20.8818 crore of capital expenditure from net issue proceeds, while the general-corporate-purpose amount was not finalised in the disclosed table. The company says general corporate purposes cannot exceed 15% of funds raised or Rs 10 crore, whichever is lower, and says the overall funding estimates are internal management estimates that have not been appraised by a bank or financial institution.

DINOTARIP had paid machinery advances of Rs 7.8636 crore as certified on July 15, 2026 and September 7, 2026. Small Industries Development Bank of India, or SIDBI, disbursed Rs 5.9779 crore on January 7, 2026, while DINOTARIP funded Rs 1.8857 crore between November 2025 and February 2026 through internal accruals; the company says the SIDBI term-loan amount will be repaid from net issue proceeds.

Two of the three monolayer film machines had already been acquired, and DINOTARIP says their acquisition cost will be repaid from net issue proceeds. Quotations dated July 1 to July 13, 2026 were valid for six months or 180 days, and the knitting-machine quotation used an exchange rate of Rs 95.2731 per United States dollar; any cost increase or foreign-exchange variation is proposed to be met from internal accruals.

Conclusion

DINOTARIP’s disclosed Rs 20.8818 crore programme is concentrated in 10 warp-knitting machines, three film lines and a printing line, but its stated IPO-funded capacity increase is 2,000 MTPA. The proposed increase follows 6,000 MTPA of additions during FY 2025-26, making utilisation of the 12,900-MTPA March 31, 2026 base part of the expansion outcome.

The next disclosed milestones are deployment of proceeds during FY 2026-27 and installation at DINOTARIP’s existing Khargone, Madhya Pradesh facility. DINOTARIP says it may reschedule, revise or cancel planned expenditure if conditions change, and that cost overruns or shortfalls would be met through internal accruals and/or debt.