Gopal Snacks Limited Commissions New Besan Manufacturing Unit in Nagpur to Enhance Backward Integration

Gopal Snacks Limited Commissions New Besan Manufacturing Unit in Nagpur to Enhance Backward Integration​

Gopal Snacks Limited, a prominent FMCG company recognized for its high-quality snack products, has strengthened its manufacturing operations by commissioning a new Besan manufacturing unit at its existing facility in Nagpur, Maharashtra.

The new unit has an installed capacity of 19,642 MT per annum. This expansion is strategically aimed at bolstering the company's backward-integrated manufacturing processes.

The addition of the Besan unit will eliminate the need for transporting Besan from the company's Rajkot manufacturing locations to Nagpur. This operational change is expected to lower transportation costs and streamline material movement, further integrating the Nagpur operations into Gopal Snacks' in house manufacturing model. As the capital expenditure is mostly a one time cost, the unit is anticipated to generate recurring cost benefits, thereby improving the efficiency of the Nagpur facility over the coming years.

The Nagpur facility is a critical unit for the company's growth outside of Gujarat. It currently manufactures a range of products, including Gathiya, Namkeen, Snack Pellets, Wafers, Extruded Snacks, and Papad. The commissioning of the Besan unit introduces the production of a key input closer to the core manufacturing activities.

Mr. Bipinbhai Hadvani, Chairman and MD, commented on the strategic move, stating that the Nagpur Besan unit reflects the company's commitment to investing in areas that yield lasting operating benefits. He noted that by localizing production, the company is reducing transportation costs and creating recurring savings from the one time investment.

Mr. Hadvani added that these efficiencies will support the company's growth plans and strengthen its competitiveness amidst an inflationary environment. He also highlighted that the company's record monthly sales performance shows continuous progress in restoring operations and strengthening its market presence. The focus moving forward is on building upon this momentum by enhancing market penetration across existing geographies and increasing its share in the packaged snacks market through improved distribution reach and product availability.

GOPAL Stock Price Movement​

As of 11:48 AM, Gopal Snacks Limited sheds 0.36% in live trading, with shares dropping by ₹0.95 to currently stand at ₹260.9. The stock trades on a volume of 44,831 shares and is fluctuating within a daily range, moving between ₹259.00 and ₹263.85.