SRF Limited has officially announced an indefinite delay to its planned manufacturing facility for BOPP Film in Indore, Madhya Pradesh. The project, which involved a projected capital outlay of ₹490 crore, was first announced on July 23, 2025. The company cited a reassessment of the current operating environment for BOPP films as the primary driver behind this strategic decision to preserve capital and maintain market-responsiveness.
Strategic Reassessment of Capital Expenditure
Following a review of the operating landscape for BOPP film production, the Board of Directors of SRF Limited has decided to put the company’s previously announced manufacturing facility in Indore, Madhya Pradesh, on hold indefinitely. The project, originally envisioned with a capital investment of ₹490 crore, will no longer proceed as per the initial timeline established in July 2025.
Rationale Behind the Decision
The company stated that this decision is a result of a prudent, market-responsive approach to capital allocation. By balancing near-term demand fluctuations with long-term strategic objectives, SRF aims to optimize its balance sheet. This move allows the company to remain well-positioned for sustainable growth while navigating current market challenges.
Focus on Future Growth
Despite the delay, SRF Limited remains committed to its core growth strategy. The company is actively focusing on diversification into new substrates, targeted investments in downstream assets, and strategic capacity expansion within higher-value segments. Management indicated that they will continue to monitor market conditions and provide updates to stakeholders regarding future developments as they arise.
Source: BSE
