Shares of Gujarat Ambuja Exports, India's leading manufacturer and exporter of cotton yarn, maize starch, liquid glucose, etc., surged 5 percent after the company receiving clearance from the Gujarat Pollution Control Board (PCB) to set up a new manufacturing plant.

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The proposed greenfield facility— a corn wet milling plant with a daily capacity of 900 tonnes —has been granted all the necessary environmental clearance by the Board. The plant is coming up at Himmatnagar in Gujarat.

At 2.15 pm on the NSE, Gujarat Ambuja Exports stock was quoted at Rs 259.45, up 5.58 percent.

Upon completion of this project, the company's overall processing capacity will substantially increase to 6,000 tonnes per day, distributed across five key locations.

It is noteworthy that this company, headquartered in Ahmedabad, is primarily engaged in corn processing, agro-processing, and textile operations. Impressively, approximately 65 percent of its total revenues for the fiscal year 2023 are attributed to its corn processing activities.

This strategic expansion will position the company as the largest player in the Indian corn processing sector following the attainment of the 6,000-tonne milestone. The management of the company has provided optimistic guidance, projecting a potential revenue escalation from Rs 3,200 crore in the fiscal year 2023 to an impressive Rs 5,000 crore post-expansion.

Furthermore, this production capacity expansion paves the way for a significant enhancement in the contribution of value-added products to the company's portfolio. The current mid-single digit figure for value-added products is projected to surge to 35 percent, catalysed by the increased processing capacity and improved capabilities brought about by the expansion.

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(Edited by : C H Unnikrishnan)