Raj Packaging approves Rs 9.85 crore manufacturing capex

Raj Packaging Industries Limited approved a Rs 9.85 crore machinery-led manufacturing upgrade on November 6, 2026, proposing Rs 6 crore of term-loan financing and Rs 2.62 crore from internal accruals for an Rs 8.62 crore capitalised project cost at its established works.

What has Raj Packaging approved for its manufacturing operations?

Raj Packaging approved a detailed project report and capital-expenditure proposal for procuring and installing machinery to advance technology and upgrade its existing manufacturing capabilities. The Board approved the plan at its November 6, 2026 meeting, alongside the unaudited results for the quarter and half year ended September 30, 2026.

The project has a stated cost of Rs 9.85 crore, while Raj Packaging said Rs 8.62 crore would be capitalised. The November 6 announcement does not provide a commissioning date, a machinery-by-machinery cost breakdown, expected additional capacity, or a quantified estimate of savings.

Raj Packaging said the proposed equipment would be of indigenous manufacture and proven capability, and would be installed at its established works. The company described the intended mechanisms as improved operational efficiency, higher productivity, technological upgrading and a strengthening of overall manufacturing infrastructure.

The stated operating context is a single business segment. Under the management approach in Indian Accounting Standard 108, Raj Packaging said it is primarily engaged in plastic films and therefore did not provide segment-wise financial information for the half year ended September 30, 2026.

How will Raj Packaging fund the Rs 9.85 crore project?

Raj Packaging proposed to fund Rs 6 crore of the Rs 8.62 crore capitalised cost through a term loan and Rs 2.62 crore through internal accruals. The debt component is the larger identified funding source, while the two specified sources together match the capitalised amount disclosed in the project proposal.

The Rs 1.23 crore difference between the Rs 9.85 crore stated project cost and the Rs 8.62 crore amount identified as capitalised is evident from the announcement, but is not explained. Raj Packaging also did not disclose the proposed lender, interest rate, repayment schedule, security, sanction status or timing of the proposed term-loan drawdown.

Internal accruals are a stated funding source rather than a separately disclosed cash balance earmarked for the project. Raj Packaging reported cash and cash equivalents of Rs 8,000 at September 30, 2026, compared with Rs 55,000 at March 31, 2026, so the filing does not indicate that the Rs 2.62 crore would be met from cash and cash equivalents alone.

What balance-sheet position will Raj Packaging bring to the upgrade?

Raj Packaging reported total assets of Rs 20.17 crore at September 30, 2026, up from Rs 19.51 crore at March 31, 2026. The Rs 66.27 lakh increase preceded the announced machinery programme because the capital-expenditure proposal was approved only on November 6, 2026.

Other equity was Rs 9.46 crore at September 30, 2026, compared with Rs 8.37 crore at March 31, 2026, while equity share capital was unchanged at Rs 4.57 crore. Together, those reported equity lines totalled Rs 14.03 crore at September 30, 2026, versus Rs 12.94 crore six months earlier.

Non-current borrowings stood at Rs 2.62 crore at September 30, 2026, compared with Rs 1.67 crore at March 31, 2026. Current borrowings were Rs 58.12 lakh, against Rs 2.23 lakh at the previous year-end, meaning both reported borrowing classifications were higher before any proposed Rs 6 crore term loan is drawn.

Deferred tax liabilities were Rs 43.55 lakh at September 30, 2026, versus Rs 6.33 lakh at March 31, 2026. The filing does not state whether the proposed project will change depreciation, working-capital requirements, tax balances or the classification of the planned term loan after installation.

What do Raj Packaging's half-year cash flows show?

Raj Packaging reported Rs 70.65 lakh of net cash from operating activities for the half year ended September 30, 2026. The cash-flow statement showed Rs 71.80 lakh of cash generated from operations before Rs 1.15 lakh of direct taxes paid, net of refunds.

The same half-year statement recorded Rs 27.33 lakh of depreciation, Rs 15 lakh of interest expense and Rs 18.11 lakh of interest paid. These figures relate to the period before the proposed Rs 6 crore term loan, so they do not establish the future interest expense or cash repayment profile of the planned borrowing.

Net cash used in financing activities was Rs 71.12 lakh in the half year ended September 30, 2026. The statement also recorded a Rs 42.10 lakh increase in non-current borrowings and reported a Rs 47,000 net decrease in cash and cash equivalents over the six-month period.

Raj Packaging reported no purchase of property, plant and equipment in the investing-cash-flow line for the half year ended September 30, 2026, while the comparable half year ended September 30, 2025 showed Rs 25,000 used for such purchases. The announced machinery investment is therefore an approved plan rather than capital spending recorded in the reported six-month investing cash flow.

Conclusion

Raj Packaging has approved a machinery programme with a stated Rs 9.85 crore total cost, of which Rs 8.62 crore is designated for capitalisation and Rs 6 crore is proposed to come from term debt. The proposal follows a half year in which total assets rose to Rs 20.17 crore, non-current borrowings reached Rs 2.62 crore and operating activities generated Rs 70.65 lakh of net cash.

The next items to watch are the proposed term-loan sanction and drawdown, the installation of the indigenous machinery at established works, and any later disclosure of completion timing or operational effects. Raj Packaging has stated objectives of efficiency, productivity and technological advancement, but has not disclosed numerical capacity, revenue or cost targets for the Rs 9.85 crore project.