Sumeet Industries Acquires Nakoda Chips Plant For Rs 234.7 mn
ECONOMY & POLICY

Sumeet Industries Acquires Nakoda Chips Plant For Rs 234.7 mn

Sumeet Industries Limited was declared the successful bidder for assets at the Phase three chips manufacturing plant of Nakoda Limited under the corporate insolvency resolution process. The board approved the letter of intent dated 11 March 2026 for a slump sale that includes land and buildings measuring 11,534 square metres and all plant and machinery for Rs 234.7 mn, giving the company 100 per cent control.\n\nThe deal will add incremental polyester chips capacity of 400 t per day, equivalent to 146,000 t per annum on a 365-day basis, and the chips will be utilised in spinning units to produce partially oriented yarn and fully drawn yarn. The company expects the additional chips to support downstream production and inventory management.\n\nManagement stated that the acquisition aligns with existing manufacturing operations and will enable scale-up while promoting operational synergies given the proximity to the company's current facilities. The transaction is subject to regulatory approvals and is expected to complete within 180 days of signing on 17 March 2026. The company said the asset purchase will provide greater flexibility for future growth.\n\nThe board had earlier approved Phase one of polyester yarn expansion comprising an addition of 15,000 t per annum with an investment of Rs 300 mn to strengthen the value-added synthetic yarn segment. The company has invested in renewable power, including a 27 per cent stake in HI-URJA TECHNO LLP for a 14 megawatt (MW) direct current solar plant for captive consumption and access to four point two zero MW captive wind power. The firm continues to source additional renewable power under captive and group captive arrangements.\n\nIn the nine months to FY26 the company reported total income of Rs 7.87 bn, EBITDA of Rs 460.9 mn and profit after tax of Rs 268.8 mn. Management indicated that the acquisition will strengthen the polyester value chain and enhance integration with downstream yarn operations. The company also noted customary risks to forward-looking statements.

Sumeet Industries Limited was declared the successful bidder for assets at the Phase three chips manufacturing plant of Nakoda Limited under the corporate insolvency resolution process. The board approved the letter of intent dated 11 March 2026 for a slump sale that includes land and buildings measuring 11,534 square metres and all plant and machinery for Rs 234.7 mn, giving the company 100 per cent control.\n\nThe deal will add incremental polyester chips capacity of 400 t per day, equivalent to 146,000 t per annum on a 365-day basis, and the chips will be utilised in spinning units to produce partially oriented yarn and fully drawn yarn. The company expects the additional chips to support downstream production and inventory management.\n\nManagement stated that the acquisition aligns with existing manufacturing operations and will enable scale-up while promoting operational synergies given the proximity to the company's current facilities. The transaction is subject to regulatory approvals and is expected to complete within 180 days of signing on 17 March 2026. The company said the asset purchase will provide greater flexibility for future growth.\n\nThe board had earlier approved Phase one of polyester yarn expansion comprising an addition of 15,000 t per annum with an investment of Rs 300 mn to strengthen the value-added synthetic yarn segment. The company has invested in renewable power, including a 27 per cent stake in HI-URJA TECHNO LLP for a 14 megawatt (MW) direct current solar plant for captive consumption and access to four point two zero MW captive wind power. The firm continues to source additional renewable power under captive and group captive arrangements.\n\nIn the nine months to FY26 the company reported total income of Rs 7.87 bn, EBITDA of Rs 460.9 mn and profit after tax of Rs 268.8 mn. Management indicated that the acquisition will strengthen the polyester value chain and enhance integration with downstream yarn operations. The company also noted customary risks to forward-looking statements.

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