R M Drip and Sprinklers Systems Limited Approves New Manufacturing Unit to Boost Capacity by 50%
R M Drip and Sprinklers Systems Limited will set up a new manufacturing unit in Nashik, Maharashtra, increasing production capacity by 50% to 12,000 MTPA. Land acquisition by Feb 28, 2026, with production starting Q2 FY27. Financing through internal accruals, loans, and equity.
A 50% capacity increase and diversification into multiple high-growth sectors will significantly impact the company's revenue and market position.
The company's decision to expand manufacturing capacity by 50% in response to increased demand and diversification of product offerings is a positive development.
R M Drip and Sprinklers Systems Limited (RMDRIP) announced that its Board of Directors, in a meeting held on January 12, 2026, approved the establishment of a new manufacturing unit under Brahmanand Pipes Private Limited. This new facility will be located in Sinnar District, Nashik, Maharashtra.
The rationale behind this expansion is the significant demand from the agriculture sector, driven by the Indian government's reduction of GST on agricultural products to 5%. The new unit is expected to increase the company's overall production capacity by approximately 50%. This strategic move aims to scale operations, strengthen market positioning, and enhance shareholder value.
The facility will manufacture a diverse range of products including high-speed drip irrigation systems, HDPE pipes for government projects, drainage and sewerage pipelines, telecom pipes, industrial piping solutions, mulching paper, and specialized micro-irrigation products. This diversification is intended to reduce product concentration risk and capitalize on growth in agricultural modernization, water infrastructure, rural development, telecom expansion, and industrial capex.
The project cost will be financed through a combination of internal accruals, promoter contributions, loans, borrowings, and fresh equity investment. The new unit will have an installed capacity of approximately 12,000 metric tonnes per annum.
The land acquisition for the unit is expected to be completed by February 28, 2026. Construction is slated for completion by the first quarter of FY 2026-27, with commercial production expected to commence in the second quarter of FY 2026-27. The company's existing capacity utilization is approximately 90%.
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