Kheria Autocomp Limited plans Rs 65 crore Sanand-II expansion
Key highlights
- Kheria Autocomp plans to invest Rs 65 crore in a Sanand-II facility scheduled to begin commercial production in January 2027.
- The new plant is planned to add 2,400 MTPA, increasing installed capacity to 7,800 MTPA in FY27 from 5,400 MTPA in FY26.
- Kheria produced 5,061.45 MTPA in FY26, when capacity utilisation stood at 93.73%.
- The Sanand-II facility is planned to have a built-up area of about 13,580 square metres.],
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Kheria Autocomp Limited plans to invest Rs 65 crore in a Sanand-II manufacturing facility scheduled to start commercial production in January 2027. The proposed plant would add 2,400 metric tonnes per annum (MTPA), lifting projected FY27 installed capacity to 7,800 MTPA from 5,400 MTPA in FY26, when utilisation was 93.73%.
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Why is Kheria adding a Sanand-II plant?
Kheria is adding Plant II after FY26 production reached 5,061.45 MTPA against installed capacity of 5,400 MTPA, equal to 93.73% utilisation. The company presents the 2,400-MTPA facility as an approximately 44% planned capacity addition, which would take its installed capacity to 7,800 MTPA in FY27.
The proposed site is at Gujarat Industrial Development Corporation (GIDC) Sanand-II in Gujarat, with a planned built-up area of about 13,580 square metres and total facility investment of Rs 65 crore. Kheria has scheduled commercial production for January 2027, and its presentation says the FY27 capacity projection is based on Unit II commencing operations in that month.
The expansion follows two annual increases in actual output. Kheria produced 3,215.00 MTPA in FY24, 4,154.00 MTPA in FY25 and 5,061.45 MTPA in FY26, an increase of 1,846.45 MTPA over two years. Installed capacity was unchanged at 4,200 MTPA in FY24 and FY25 before rising to 5,400 MTPA in FY26.
How much will Kheria's capacity increase by FY27?
Kheria projects installed capacity of 7,800 MTPA in FY27, an increase of 2,400 MTPA from 5,400 MTPA in FY26. That increment is about 44% of the FY26 capacity base and matches the planned capacity-addition percentage stated for Plant II.
Kheria's FY26 production was 907.45 MTPA above FY25 output of 4,154.00 MTPA, even as utilisation declined by 5.17 percentage points from 98.90%. The change coincided with a 1,200-MTPA increase in installed capacity during FY26, which exceeded the annual increase in actual production.
The FY27 figure is a capacity projection rather than a disclosed production forecast or utilisation target. Kheria specifies that Unit II is scheduled to begin operations in January 2027 and contribute 2,400 MTPA, but does not provide a projected FY27 production volume.
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What manufacturing base will support Kheria's expansion?
Kheria's FY26 manufacturing base includes 30 injection-moulding machines with a clamping-force range of 120 tonnes to 1,700 tonnes, alongside more than 20 industrial automation systems. The company says automated part handling and assembly support production consistency across its moulding operations.
The company identifies Vision Measuring Machines for dimensional inspection and quality control. Its stated operating approach includes standardised procedures and lean manufacturing practices, while its 10-step manufacturing flow runs from raw-material procurement and receiving inspection through pre-drying, injection moulding, assembly, final inspection and dispatch.
The process also specifies first-in, first-out material storage, de-gating and de-flashing after injection moulding, and final visual inspection before packing. These mechanisms sit alongside the 120-tonne to 1,700-tonne machine range disclosed for Kheria's existing manufacturing infrastructure.
Kheria's portfolio spans heating, ventilation and air-conditioning (HVAC) components, lighting components, exterior components and under-hood parts. Products named include air ducts, blower cases and heater housings in HVAC; housings, reflectors and aiming frames in lighting; and radiator fans, shrouds, and upper and lower P-tank parts in the under-hood category.
What does utilisation history show about Kheria's existing capacity?
Kheria's utilisation rose from 76.55% in FY24 to 98.90% in FY25 before moderating to 93.73% in FY26. Despite the FY26 percentage decline, actual production reached its highest disclosed level of 5,061.45 MTPA because installed capacity had increased to 5,400 MTPA from 4,200 MTPA.
FY25 was the closest disclosed year to full use of capacity, with 4,154.00 MTPA of output against 4,200 MTPA of installed capacity. FY26 therefore added 1,200 MTPA of installed capacity and 907.45 MTPA of output, leaving 338.55 MTPA between installed capacity and actual production.
The planned 7,800-MTPA capacity would create a larger production base than the FY26 facility, but Kheria has not disclosed an expected utilisation rate after Unit II begins. The reported milestone is the January 2027 start of commercial production, rather than a stated volume ramp, customer programme or annual output target.
Conclusion
Kheria's Rs 65 crore Plant II plan is linked to a manufacturing base that operated at 93.73% utilisation in FY26 and produced 5,061.45 MTPA. The proposed 2,400-MTPA addition would raise installed capacity from 5,400 MTPA to 7,800 MTPA, after output increased from 3,215.00 MTPA in FY24.
The next disclosed event is the scheduled January 2027 start of commercial production at Sanand-II. The key matter to watch is whether Unit II begins on that timetable and how Kheria's actual output and capacity utilisation develop against the projected FY27 installed capacity of 7,800 MTPA.