Sanstar Dhule expansion targets 2,100 TPD by FY2027

What changed

Sanstar Limited has outlined progress on its capacity expansion at Dhule, Maharashtra, with the company stating that the project remains on schedule. The plan is designed to lift Sanstar’s total installed capacity to 2,100 tonnes per day (TPD) from the current 1,100 TPD. The expansion is positioned around scaling native starch output first, followed by higher value derivatives such as liquid glucose and dextrose.

In a separate capacity-related update from the listed space, Neuland Laboratories said its board, at a meeting held on 12 May 2026, approved an enhancement of capacity at Unit 1 in Bonthapally Village, Gummadidala Mandal, Sangareddy District, Telangana.

Sanstar’s current footprint and where growth will come from

Sanstar operates two facilities, with Dhule, Maharashtra at 750 TPD and Kutch, Gujarat at 350 TPD. The company has described this as a combined capacity of 1,100 TPD, also cited as 363,000 tonnes per annum (TPA). It has highlighted port connectivity as part of its operating footprint, citing Dhule’s access to Nhava Sheva and Hazira ports, and Kutch’s access to Mundra and Kandla ports.

The Kutch facility is described as USFDA registered. Sanstar has also stated that both plants use SCADA automation, which it links to operating efficiency, product quality, safety, and flexibility.

Dhule expansion plan: two phases

Sanstar has described the Dhule expansion as a two-phase build-out. The stated sequencing is native starch commissioning first, followed by a derivatives facility. Across the source material, the company has referenced multiple milestone windows for these phases.

One set of disclosures states that the native starch manufacturing plant is expected to be commissioned in 4Q FY2026 and the derivatives facility in 1Q FY2027. Another set states native starch in 3Q FY2026 and derivatives in 4Q FY2026. In addition, the company has said operations for the expanded native starch capacity are set to commence by the end of February 2026, and separately that native starch commissioning is on track for December 2025, with derivatives cited for March 2026 in one communication.

Capacity math: 1,100 TPD to 2,100 TPD

Sanstar has linked the Dhule project to an increase in Dhule capacity to 1,750 TPD. With Kutch at 350 TPD, total capacity would rise to 2,100 TPD. The company has also stated that, post expansion, the total would be 693,000 TPA.

Sanstar has said this scale-up is intended to make it India’s second-largest producer of maize-based specialty products and ingredient solutions. In one description, it also termed the post-expansion profile as India’s second-largest exporter of maize-based products.

Funding: IPO proceeds earmarked for Dhule capex

Sanstar has stated that IPO proceeds of ₹1,816 million have been allocated to the Dhule expansion. On a like-for-like basis, that equals ₹181.6 crore. The company has also said the net proceeds from the issue were intended to be used for funding capex for the Dhule facility expansion and for repayment and or pre-payment of certain borrowings.

Operating context: native starch pricing pressure and product mix shift

Sanstar has pointed to short-term pressure in native starch pricing, attributing this to Chinese corn starch exports into Southeast Asia and resulting excess supply in India. Against this backdrop, the company has said that as expanded capacity comes on stream, it expects a gradual improvement in product mix, with a higher contribution from derivatives such as liquid glucose, dextrose, and other specialty starch-based ingredients.

The company has also noted that derivatives typically offer more stable pricing compared to native starch. It has linked commissioning and ramp-up to better absorption of fixed costs and a step-up in contribution from higher-margin derivative segments.

Neuland Laboratories: Telangana Unit 1 capacity expansion approved

Neuland Laboratories said its board approved an enhancement of capacity at Unit 1 in Telangana. The existing capacity at the unit is 256 KL, and the company stated existing capacity utilisation at 91%. The proposed capacity addition is 120.5 KL.

Neuland said the capacity addition is expected to be completed within 12 to 18 months. The investment required is ₹143.4 crore, funded through internal accruals and borrowings.

Key facts at a glance

Why these announcements matter for investors

For Sanstar, the expansion is closely tied to the company’s goal of moving product mix toward derivatives, which it has described as generally more stable in pricing than native starch. The company’s commentary connects commissioning to improved fixed-cost absorption and higher contribution from derivative segments, which becomes relevant when the base business faces pricing headwinds.

For Neuland, the high utilisation figure of 91% at Unit 1 provides context for the board’s decision to add capacity. The company has also provided clear information on capex size, funding mix, and the planned execution window of 12 to 18 months.

What to watch next

Sanstar’s next operational milestones are the commissioning and ramp-up of expanded native starch capacity at Dhule, followed by the derivatives facility coming online, with timelines referenced across multiple company communications. Neuland’s next key updates are likely to be progress markers on capex execution at its Telangana Unit 1 and the pace of commissioning within the stated 12 to 18 month window.