Vedant Poly Fabs Plans 12.85 Million-Kg Line at 71.64% Use

Vedant Poly Fabs plans a 12.85 million-kg-a-year extrusion coating and lamination line, larger than its Fiscal 2026 installed capacity of 8.85 million kg. The Rs 6.5129 crore project is proposed when the existing plant reported 71.64% utilisation, equivalent to 6.34 million kg of output from the installed base.

Why is Vedant Poly Fabs adding capacity before full utilisation?

Vedant Poly Fabs says the proposed line is intended to meet an anticipated rise in flexible-packaging demand from domestic fast-moving consumer goods, or FMCG, food processing, agriculture, pharmaceutical and industrial customers. Vedant Poly Fabs operates one manufacturing unit at Digberia Road, Barasat, West Bengal, where it makes lamination, printed plastic flexible laminates, milk film, shrink film and allied packaging products.

Vedant Poly Fabs is proposing an extrusion coating and lamination line, a converting machine that coats molten polymer onto a substrate or bonds layers of substrate together. The machine is designed to process biaxially oriented polypropylene, or BOPP; biaxially oriented polyethylene terephthalate, or BOPET; biaxially oriented polyamide, or BOPA; cast polypropylene, or CPP; paper; and aluminium foil. Vedant Poly Fabs says the line is expected to improve process integration, production flexibility and control of coating and lamination parameters for multilayer flexible packaging.

Vedant Poly Fabs had already increased installed capacity by 2.00 million kg in Fiscal 2026, taking it from 6.85 million kg in Fiscal 2025 to 8.85 million kg. Utilised capacity increased by 2.38 million kg in the same period, from 3.96 million kg to 6.34 million kg, lifting utilisation by 13.86 percentage points to 71.64%. The reported trend shows that output rose despite the capacity increase, but the Fiscal 2026 plant was not at full utilisation.

How large is Vedant Poly Fabs' proposed capacity addition?

Vedant Poly Fabs' proposed line has estimated installed capacity of 12.85 million kg a year, equal to 145.2% of its Fiscal 2026 installed capacity of 8.85 million kg. If the line is additive and the existing plant continues to operate, the disclosed figures imply 21.70 million kg of total installed capacity, although Vedant Poly Fabs does not state a consolidated post-installation capacity figure.

The 12.85 million-kg line is about 5.12 times the 2.51 million kg of unused capacity implied by Fiscal 2026 utilisation. The comparison does not establish whether demand will be sufficient, because the proposed equipment has a distinct extrusion-coating and lamination function and processes a specified range of substrates. It means utilisation of the combined base would depend on customer orders for the new line's product mix as well as on volumes absorbed by existing equipment.

What does Vedant Poly Fabs' utilisation history show?

Vedant Poly Fabs reported utilisation of 35.75% in Fiscal 2024, 57.78% in Fiscal 2025 and 71.64% in Fiscal 2026. Over those two years, utilised capacity rose from 2.45 million kg to 6.34 million kg, while installed capacity increased from 6.85 million kg to 8.85 million kg only in Fiscal 2026.

The reported utilisation rate rose by 35.89 percentage points between Fiscal 2024 and Fiscal 2026. Fiscal 2026 nevertheless retained 28.36% unutilised capacity, equal to approximately 2.51 million kg on the 8.85 million-kg base. For the planned line to increase total throughput, Vedant Poly Fabs would need demand to continue growing after Fiscal 2026 and the new equipment to be commissioned on its stated timetable.

What will Vedant Poly Fabs' Rs 6.5129 crore project fund?

Vedant Poly Fabs proposes to use Rs 6.5129 crore from net issue proceeds exclusively to purchase and install new plant and machinery at its existing manufacturing facility. Rajoo Engineers Limited quoted Rs 5.5194 crore excluding goods and services tax, or GST, for the equipment on April 11, 2026. GST at 18% was Rs 99.35 lakh, producing the stated total machinery cost of Rs 6.5129 crore.

The quoted LAMEX-252 REEL-1275-60/1400 EC line has a maximum speed of 250 metres a minute, a web width of 1,300 millimetres and coating capability of 8 to 40 grams per square metre. It has 13 assemblies, including turrets, extruders, die and controls, and a stated electrical load of 331.19 kilowatts. Vedant Poly Fabs says the machine will be new rather than second-hand and that its promoters, directors, key managerial personnel and senior management personnel have no interest in the purchase.

Vedant Poly Fabs does not propose to use issue proceeds for land or civil or structural construction, which it says would be funded through internal accruals. The company says it must obtain necessary licences to execute the capital expenditure. The estimate is based on management's business plan and supplier quotations, while the objects of the issue have not been appraised by a bank, financial institution or other independent third-party organisation.

When could Vedant Poly Fabs start production from the line?

Vedant Poly Fabs expects the line to be installed and begin commercial production in the second half of Fiscal 2027, with March 2027 identified as the commercial-production month. The implementation schedule specifies planning and order placement in January 2027, procurement and delivery in February 2027, installation in February 2027, and trial runs and testing in March 2027.

The schedule is expressly subject to realisation of issue proceeds. Vedant Poly Fabs says any funding shortfall may be met through internal accruals and/or secured or unsecured loans, while it had not raised bridge loans intended for repayment from issue proceeds as of the draft prospectus date. Its Board approved the capital expenditure and its means of finance on May 12, 2026.

The Rajoo Engineers quotation was valid for 180 days from April 11, 2026, or until October 8, 2026. Dun & Bradstreet Information Services India Private Limited completed vendor due diligence in a report dated May 29, 2026. Completion therefore depends on funding, procurement, installation, testing and required statutory formalities, rather than on the quotation alone.

Conclusion

Vedant Poly Fabs is planning a 12.85 million-kg capacity addition that exceeds its entire Fiscal 2026 installed base of 8.85 million kg, while the existing plant operated at 71.64% utilisation. The stated rationale is a new extrusion-coating and lamination capability for multilayer flexible packaging, and the reported Fiscal 2024 to Fiscal 2026 data show rising output and utilisation before the proposed expansion.

The next disclosed milestone is commercial production planned for March 2027, subject to receipt of issue proceeds. The key disclosed matters to watch are completion of procurement, installation and trial runs, the required licences, and subsequent disclosures on how the new machinery affects capacity utilisation. Vedant Poly Fabs says its Board and Audit Committee will monitor use of net proceeds, including half-yearly disclosures to the Audit Committee under the Listing Regulations.