Shares of Ingersoll-Rand (India) advanced 3.31% to Rs 1874.10 after the company announced that its board has approved setting up a new manufacturing plant to be situated in Gujarat to increase the manufacturing capacity of the existing products and also to manufacture new products.

The company's existing capacity is 10,000 units per month and the capacity utilization rate is 100%.

It proposes to add a capacity of 5,000 units per month initially by the end of September 2024. The project requires an investment of Rs 170 crore (plus contingency of up to a maximum of 7%) and the same would be financed from internal accruals.

Offering the rationale for the said capex proposal, the company said that current projects for growth need additional space which the current plant at Naroda cannot fulfil. New plant will not only help secure space for immediate expansion plans but will also fuel future growth prospects.

“The new plant upon becoming fully operational will manufacture new range of air compressors, air treatment devices, hydrogen compressors etc. to cater to the requirement of domestic market as well as export market in Europe, Middle East and Africa regions,” Ingersoll-Rand said in a statement.

Ingersoll-Rand (India) manufactures air compressors of various capacities for the domestic and export markets. The company derives revenue from the sale of reciprocating, rotary, and centrifugal compressors and spares in the domestic market, and from exports to its parent and affiliates.

The company's consolidated net profit rose 36.23% to Rs 35.46 crore on a 2.02% rise in sales to Rs 253.94 crore in Q2 FY23 over Q2 FY22.