Shares of Raymond Ltd were trading in the red and 1% lower on 12 October after the company announced plans to expand its manufacturing capacity in Andhra Pradesh.

The aim of this expansion is to help the company meet the growing customer demand and handle additional business volumes during the current financial year. The company is setting up an additional brownfield manufacturing facility through one of its subsidiaries near its existing large manufacturing unit in Andhra Pradesh.

A brownfield expansion involves adding capacity around an existing facility, allowing a company to increase production capabilities without building an entirely new manufacturing base.

Raymond said the additional facility will serve as an interim capacity expansion measure. It is expected to help the company respond faster to customer requirements and support incremental volumes in the near term.

Alongside the brownfield expansion, Raymond is continuing work on its planned greenfield manufacturing project in Andhra Pradesh. Unlike the additional brownfield facility, the greenfield project is intended to create a larger manufacturing platform to support the company’s medium- and long-term growth plans.

The two projects form part of a broader strategy to increase production capacity in stages. The brownfield facility is expected to address immediate demand, while the greenfield project will provide infrastructure for future expansion.

Sanjeev Sharma, Joint Managing Director and CEO of JKMPTL, a Raymond Group company, said the additional capacity would help the business respond more quickly to current customer requirements while allowing the long-term project to progress as planned.

At 2:30 pm, the Raymon were trading 1.39% lower at Rs 1,170.10 on NSE.

Unlock profitable opportunities every day! Tradz by EquityPandit provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Tradz by EquityPandit and start winning now!