Shellz India Plans 34,500 MT Sonipat Capacity, Margin Lift

In its November 2026 H1 FY27 presentation, Shellz India Limited says its Sonipat plan would provide 34,500 MT of capacity across two phases, compared with 17,100 metric tonnes per annum (MTPA) installed in FY26, while management projects a 3% to 4% enhancement in earnings before interest, tax, depreciation and amortisation (EBITDA) margin from consolidating Delhi operations.

What capacity is Shellz India planning at Sonipat?

Shellz India is planning 34,500 MT of installed capacity at Sonipat after Phase 1 and Phase 2. Phase 1 is listed at 26,400 MT and Phase 2 at 8,100 MT, compared with the company’s FY26 installed capacity of 17,100 MTPA across five product categories.

The final Sonipat capacity would be 17,400 MT above the FY26 installed base and marginally more than double it. Shellz India describes the facility as a purpose-built global-standard food factory, but the presentation does not provide a commissioning date, capital-expenditure amount, funding plan or schedule for completing Phase 2.

The Phase 1 plan alone exceeds FY26 installed capacity by 9,300 MT. The presentation presents Sonipat as an upgraded replacement for Delhi capacity as well as an expansion, although it does not state when production would transfer fully from Delhi to Sonipat.

How is Sonipat Phase 1 capacity allocated across products?

Shellz India allocates the largest share of Sonipat Phase 1 capacity, 9,450 MT, to Choco Delights. Baked Treats are allocated 7,500 MT, Jellies 7,200 MT, Food and Bakery Ingredients 1,500 MT, and Panned and Sugar Candies 750 MT.

Choco Delights, Baked Treats and Jellies together account for 24,150 MT of the 26,400 MT Phase 1 total. Food and Bakery Ingredients and Panned and Sugar Candies account for the remaining 2,250 MT, showing that the first phase is concentrated in the company’s three larger disclosed product categories.

Shellz India does not disclose the equivalent product-level split for its 17,100 MTPA FY26 Delhi capacity. It also gives no category allocation for the 8,100 MT Phase 2 addition, so the presentation does not establish which formats would receive the incremental capacity beyond Phase 1.

Why does Shellz India project a 3% to 4% EBITDA-margin enhancement?

Shellz India management projects a 3% to 4% EBITDA-margin enhancement from consolidating Delhi operations into Sonipat. The presentation attributes the projected improvement to lower operating costs from consolidation, rather than to a stated price increase, sales target or revenue assumption.

The proposed operating mechanism is one purpose-built plant with specialised zones for polymer, sugar and panned candies, chocolate, and baking. Shellz India also cites purpose-built material flow and progressive automation, meaning automation is planned to be added in phases rather than described as fully deployed from the outset.

The 3% to 4% margin figure is a management projection, not a reported FY26 outcome. Shellz India does not disclose its starting EBITDA margin, a cost bridge, expected capacity utilisation or the date when the projected operating-cost benefit is expected to be realised.

How could Sonipat support exports and private-label production?

Shellz India says the Sonipat plant is being designed to global food-safety standards and is working towards certifications such as BRCGS and SQF, alongside ISO 22000 and Food Safety and Standards Authority of India (FSSAI) requirements. The presentation says global certifications are an entry requirement for manufacturing for global brands and exporting to developed markets.

The company’s Delhi facility already has ISO 22000:2018 Food Safety Management System certification and an FSSAI manufacturing licence. Its disclosed quality framework includes an in-house food laboratory for microbiological, moisture, ash, fat, acidity and Brix testing, plus packaging tests covering tearing strength, sealing integrity, moisture and printing parameters.

Shellz India links the planned certification route specifically to private labelling and developed-market exports. The company already exports to buyers in the Middle East, South Asia and South Europe and undertakes private-label manufacturing for third-party customers, but it does not say that BRCGS or SQF certification has been obtained or that global-brand contracts have been secured.

Exports and private label represented 1.59% of FY26 revenue from operations, compared with 95.91% from the super-stockist channel. The presentation separately lists exports at 0.54% of FY26 revenue, indicating that Sonipat is being positioned to expand a smaller channel while the stockist model remains the company’s principal route to market.

The expansion can also serve several manufacturing formats because Shellz India reports in-house capability across fat-based, milk-based, cocoa-based, water-based and sugar-based products. The disclosed Phase 1 mix covers five segments, from Choco Delights and Jellies to Food and Bakery Ingredients, although the presentation gives no utilisation or export-volume targets for the new capacity.

Conclusion

Shellz India is presenting Sonipat as both a capacity and operating-model change. The plan raises installed capacity from 17,100 MTPA in FY26 to 34,500 MT across two phases, while management expects consolidation, specialised production zones, material flow and phased automation to produce a 3% to 4% EBITDA-margin enhancement. The proposed certification path also connects the site with private-label work and developed-market exports.

The next items to watch are the undisclosed commissioning timetable for the 26,400 MT Phase 1 and 8,100 MT Phase 2 additions, progress towards BRCGS and SQF certification, and evidence of growth in the 1.59% FY26 exports-and-private-label channel. Shellz India has disclosed the capacity destination and management’s margin projection, but not milestones for completion, utilisation or certification.