AVRO INDIA LIMITED — Important, 31-01-2025: Capacity addition

Avro India Limited has successfully installed one of two new plastic recycling extruder machines, expected to be commissioned shortly. This expansion will increase the company's plastic recycling capacity from 500 MT per month to 750 MT, with total capacity reaching 1,000 MT per month upon the installation of the second machine. The advanced technology used in these machines promises lower waste, reduced power consumption, and improved efficiency. Financial impacts are anticipated to manifest in Q1 FY26, enhancing gross margins through the internal consumption of recycled granules.

The company has secured 30% of its plastic waste requirements through corporate partnerships, leading to a significant reduction in procurement costs by 30-40%, thereby positively affecting profitability. Additionally, Avro India is pursuing Extended Producer Responsibility (EPR) certification and exploring partnerships with Material Recovery Facilities (MRFs) to further optimize its sustainability efforts. This capacity addition aligns with the company's long-term growth strategy, promoting efficiency and potential profitability gains.