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PG Electroplast acquires 50-acre land in Sri City for plant buildout

Synopsis:


PG Electroplast’s subsidiary PG Technoplast acquires 50 acres in Sri City, Andhra Pradesh, and plans ₹1,000 cr investment over 5 years. First phase aims at 1.2 million refrigerators annually by December 2026.


Source:
PG Electroplast Press Release (BSE Exchange Fillings) | Published on Sept 29, 2025

Disclaimer: This content has been published for informational purposes only. Bajaj Broking is not affiliated with, nor does it endorse or assume any responsibility for, the source material. Readers are advised to consult the original publication for complete and accurate context.

PG Electroplast news today

As quoted in the press release of PG Electroplast (BSE Exchange Filings), PG Electroplast Ltd, via its wholly owned subsidiary PG Technoplast, has purchased a 50-acre site in Sri City, Andhra Pradesh. This signifies the group’s introduction of a manufacturing facility into southern India. The 50-acre purchase represents the largest land acquisition the PG Group has made.

The Sri City factory will function as a new strategic manufacturing node within PG Electroplast. Close proximity to a major port is expected to simplify the inbound and outbound logistics associated with the business. Initially, the Sri City factory will concentrate on refrigerators but does allow for a future manufacturing capability of washing machines, air conditioners, and other home appliances. The acquisition of the 50 acres significantly increases PG Electroplast’s manufacturing assets in India and enhances its manufacturing reach beyond the footprint it has established in Indian manufacturing to date.

Also read: Azad Engineering wins ₹651 cr Mitsubishi contract

JINDAL STEEL LIMITED

Trade

1043.3513.84 (1.34 %)

Updated - 29 September 2025
1052.00day high
DAY HIGH
1035.10day low
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1278211
VOLUME (BSE)

Key Takeaways

  • The land parcel is 50 acres in Sri City, Andhra Pradesh.

  • Total planned investment is ₹1,000 crore over 5 years.

  • The first phase will focus on refrigerator manufacturing with 1.2 million units/year capacity, targeted by December 2026.

  • The site is located near Chennai port to support logistics and export opportunities.

  • The facility is designed to allow future expansion into other home appliances.

Also read: Jindal Steel commissions 5 MTPA blast furnace at Angul plant

Simple capacity comparison

Phase

Product Focus

Capacity / Year

Expected Start

Phase 1

Refrigerators

1.2 million units

December 2026

Later phases

Appliances (AC, washing machines etc.)

Under planning

Share Price Update 

PG Electroplast's share price closed on the BSE on September 26, 2025, at Rs. 514.65, down 4.65%, with a delay until 15:30 PM IST. 

Market Response

The announced ₹1,000 crore investment represents a significant amount when viewed in the context of the company’s latest capital spending. You could think of this announcement as a signal of a belief in product margin potential at manufacturing scale and growth in consumer demand for appliances. However, the long investment horizon, as well as working capital cycles and the dynamics of demand will be important to the linkage of this expansion to PGE’s financial outcomes. As a reminder, the Sri City news represents an expansion for PGE at a time any investment in the sector has been under pressure due to volatile materials costs, supply chain disruptions, and competition from imports. 

Strategic Implications

PG Electroplast will be reshaping its geographic manufacturing footprint by acquiring and developing another large site in Sri City. The new site will provide PG Electroplast with improved access to the southern markets and export gateways. Export logistics could improve in terms of cost and time since the site is less than 100 km from the Chennai port. 

This expansion also diversifies risk across regions and, should any regional supply constraints emerge, the firm will more easily be able to source products from its plants in other states. For those of you tracking the firm, the scale of this investment and the timing will be an excellent test of PG Electroplast's project management, execution discipline, cost control and ability to smoothly ramp the new production capacity.

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