Synopsis: Regaal Resources Ltd has announced a major capacity expansion initiative by doubling its crushing capacity from 825 TPD to 1,650 TPD. The company has also commissioned new Liquid Glucose and Maltodextrin Powder manufacturing facilities along with an expansion in captive co-generation power capacity. The total investment for the expansion stands at approximately Rs. 389 crore.
Regaal Resources Ltd operates in the agro-processing and maize-based specialty products segment. The company manufactures value-added maize derivative products catering to domestic as well as international markets. With rising demand for food processing ingredients, specialty starch products, and industrial maize derivatives, the company is aggressively expanding its production capabilities to strengthen its market presence and improve operational scale.
Regaal Resources currently has a market capitalization of Rs. 956 crore, while the stock trades around Rs. 93 up by 2% compared to its previous close of Rs. 90. The company trades at a P/E ratio of 17.3 and has reported ROCE of 16.2% and ROE of 25.2%, indicating healthy profitability and efficient capital utilization. The book value of the company stands at Rs. 44.6 per share.
Regaal Resources announced that it has successfully doubled its crushing capacity from 825 tonnes per day (TPD) to 1,650 TPD at its manufacturing facility located in Kishanganj, Bihar. The company stated that the earlier 825 TPD capacity was fully utilized, which prompted the need for significant expansion to meet increasing customer demand across domestic and export markets.
As part of the expansion, the company has commissioned a new Liquid Glucose (LG) manufacturing facility with a production capacity of 180 metric tonnes per day. Additionally, Regaal Resources has also launched a new Maltodextrin Powder (MDP) manufacturing facility with a production capacity of 50 metric tonnes per day.
The company has also expanded its captive co-generation power plant capacity from 7.1 MW to 15.8 MW. The enhanced captive power infrastructure is expected to improve operational efficiency, reduce dependency on external power supply, and support higher production utilization.
The total investment required for the expansion project stands at approximately Rs. 389 crore. The company stated that the expansion has been funded through a combination of debt and internal accruals.
Industry Outlook
India’s food processing and FMCG sector continues to witness strong growth driven by rising disposable income, urbanization, and increasing consumption of packaged foods. India’s food processing market reached US$ 354.5 billion in FY24 and is expected to cross US$ 535 billion by FY26. Additionally, India’s healthy snack and specialty food ingredients market is projected to grow steadily due to rising demand for convenience foods, functional ingredients, and premium nutrition products.
Government support through production-linked initiatives, food processing infrastructure schemes, and rural development programs is further boosting sector growth. The Ministry of Food Processing Industries has approved over 1.44 lakh projects under various flagship schemes to strengthen supply chains and food manufacturing capacity. Increasing demand for value-added maize derivatives, starch products, glucose solutions, and specialty ingredients is expected to create long-term growth opportunities for companies operating in this segment.
Regaal Resources’ latest expansion marks a major milestone in the company’s growth journey. The doubling of crushing capacity along with commissioning of new value-added manufacturing facilities is expected to strengthen revenue potential and improve economies of scale. The Rs. 389 crore expansion also highlights the company’s confidence in long-term demand growth for maize-based specialty products.
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