TNA Solutions Plans 67.77% Capacity Expansion in Madhya Pradesh

TNA Solutions Limited plans to increase installed manufacturing capacity by 67.77% through a proposed Madhya Pradesh unit, adding 35.40 lakh metres a year to its Fiscal 2026 capacity of 52.23 lakh metres. The project carries estimated capital expenditure of Rs 6.76 crore and is scheduled to begin commercial production in April 2027.

Why is TNA Solutions planning a 67.77% capacity expansion?

TNA Solutions is planning the 67.77% capacity expansion after reporting average capacity utilisation of 75% at its existing manufacturing activities in Fiscal 2026. Capacity utilisation is the proportion of installed production capacity used during a period. The proposed unit would add 35.40 lakh metres annually, taking total installed capacity to 87.63 lakh metres from 52.23 lakh metres.

TNA Solutions manufactures home-textile products including sheet sets, pillow shells and covers, towels, comforters, mattress protectors and quilts. It procures greige fabric, which is unfinished woven fabric, from weavers and also buys finished fabric from mills, processing houses and stockists. The additional capacity is intended to serve demand from existing and prospective customers, so its eventual use depends on product demand, order volumes and the availability of those materials.

The proposed addition follows a period of substantial growth in the installed base. Existing installed capacity rose from 13.11 lakh metres in Fiscal 2024 to 24.99 lakh metres in Fiscal 2025 and 52.23 lakh metres in Fiscal 2026. The new unit would increase the Fiscal 2026 base by 35.40 lakh metres, rather than merely replacing capacity already available at the existing facility.

Where will TNA Solutions build the Madhya Pradesh textile unit?

TNA Solutions plans to build the unit at Plot No. I-30, Industrial Area Jetapur, Village Palasia, Tehsil Dharampuri, District Dhar, Madhya Pradesh. The site measures 2.17 lakh square feet and is held under a 99-year lease granted by MP Industrial Development Corporation Limited through a lease deed dated November 27, 2025.

The plant and manufacturing area is expected to cover about 20,000 square feet, or about 9.2% of the 2.17 lakh-square-foot plot. The disclosed layout also includes 2,000 square feet of staff residences, 15,000 square feet of internal roads and 1.79 lakh square feet of remaining open area for infrastructure, utilities and landscaping. The production building is proposed as a 30-foot pre-engineered building with a 10-foot masonry wall and colour-coated galvanised-sheet upper structure.

The unit still requires building-plan approval before construction and a factory licence and fire no-objection certificate before commercial operations. Consent to establish and consolidated consent and authorisation are listed as exempt under a stamped letter from the Madhya Pradesh Pollution Control Board. The April 2027 target therefore depends on the outstanding approvals, construction, machinery installation and commissioning occurring within the stated schedule.

How will TNA Solutions fund the Rs 6.76 crore project?

TNA Solutions plans to use Rs 6.76 crore of net issue proceeds for civil construction, allied infrastructure and plant and machinery at the proposed unit. Civil construction represents Rs 5.31 crore of the estimate, while plant and machinery represents Rs 1.44 crore. The board approved the unit and this use of net proceeds on August 6, 2026.

The civil estimate includes site development, reinforced cement concrete foundations, structural steel, roofing, industrial flooring, boundary walls, staff residences, office space, internal roads, water systems, electrification and fire-fighting provisions. It includes goods and services tax, or GST, at 18%. The vendor also recommended a contingency provision equal to 10% of estimated construction cost for unforeseen site conditions, quantity variations, minor design changes and price movements, but the disclosed Rs 5.31 crore civil cost does not state this contingency as an included project-cost line.

The machinery estimate covers 70 single-needle lockstitch machines, 30 five-thread overlock machines, 15 puller machines, 10 automatic buttonhole machines, two automatic heat-seal fusing machines and two embroidery machines. The embroidery machines are the largest equipment line at Rs 64.90 lakh including GST. No machinery orders had been placed at the time of disclosure, leaving 100% of the Rs 1.44 crore machinery procurement to be ordered.

When does TNA Solutions expect the new unit to start production?

TNA Solutions expects commercial production from the new unit to start in April 2027. Civil works are scheduled to begin in November 2026 and end in March 2027, while machinery ordering is planned for December 2026 and receipt is planned for February 2027. Installation, trial runs and commissioning are each scheduled for April 2027.

The company’s deployment schedule places Rs 5.06 crore of project capital expenditure in Fiscal 2026-27 and Rs 1.70 crore in Fiscal 2027-28. These dates are estimates based on a chartered engineer’s assessment report dated July 30, 2026, and TNA Solutions states that actual dates may vary. The company can extend, reduce or otherwise revise the deployment period based on the offer timing, market conditions, business needs, demand, contractual obligations and other operating factors.

TNA Solutions has obtained a civil quotation dated July 24, 2026 from Neev Infracon Private Limited and a machinery quotation dated July 29, 2026 from IIGM Private Limited. Both quotations are valid for six months, but no definitive agreement has been signed with either supplier. If final costs exceed estimates, the company says it may use proceeds earmarked for general corporate purposes, internal accruals or debt.

How does the expansion connect to TNA Solutions’ working-capital plan?

TNA Solutions projects working-capital requirements of Rs 79.42 crore in Fiscal 2027 and Rs 109.79 crore in Fiscal 2028, compared with Rs 74.17 crore in Fiscal 2026. Working capital is current assets, including inventory and trade receivables, less current liabilities. The Fiscal 2028 requirement is Rs 35.62 crore above the Fiscal 2026 requirement under management’s projected operating model.

Inventory is projected to rise from Rs 36.06 crore in Fiscal 2026 to Rs 55.54 crore in Fiscal 2028, while trade receivables are projected to rise from Rs 36.54 crore to Rs 54.19 crore. The company assumes 200 inventory days in both Fiscal 2027 and Fiscal 2028, compared with 201 days in Fiscal 2026. It assumes 120 trade-receivable days in both projected years, down from 128 days in Fiscal 2026, when export customers accounted for 81.40% of total trade receivables.

The funding model assigns Rs 4 crore of issue proceeds to working capital in Fiscal 2027 and Rs 16 crore in Fiscal 2028. The remaining Fiscal 2028 requirement is projected to be met through Rs 37.50 crore of short-term borrowings and Rs 56.29 crore of internal accruals. The capacity expansion’s operating contribution therefore depends on the unit starting as planned and on TNA Solutions maintaining inventory, collecting receivables and securing the disclosed funding mix.

Conclusion

TNA Solutions is pursuing a defined expansion at Dhar that would add 35.40 lakh metres of annual capacity and lift total installed capacity to 87.63 lakh metres. The plan follows 75% utilisation of existing operations in Fiscal 2026 and combines Rs 6.76 crore of project capital expenditure with a working-capital model that projects Rs 109.79 crore of requirements in Fiscal 2028.

The next disclosed milestones are the planned November 2026 start of civil works, December 2026 machinery ordering, pending building and operating approvals, and April 2027 commercial production. Final cost and timing remain dependent on vendor contracting, quotation validity, approvals, project execution and the availability of internal accruals or debt if expenditure exceeds the stated estimates.