Studds Accessories plans to invest ₹150–160 crore in a new manufacturing plant. The company’s most automated facility to date will be the fifth plant, which is anticipated to be put into service by July 2026.
The need for increased capacity due to high demand:
There are two phases involved in making this investment, with the first phase costing about Rs. 100 crore and the second phase adding up to about Rs. 50 to 60 crores. This project is being carried out to help deal with the problem of inadequate capacity due to increasing demand.
This new factory would enable increased production in total and would aid in fulfilling the company’s plan to increase its exports as well. This move comes amid the fact that the company has already been increasing its manufacturing capacity due to rising demand in foreign and domestic markets.
Automation and hybrid manufacturing system:
Another important aspect of the proposed plant will be the use of innovative manufacturing technologies. It is estimated that about five to 10 per cent of the entire capital will be spent on automation technology, including robotics, Internet of Things-based manufacturing, and automated painting systems.
This will increase the efficiency of operations, decrease cycle time, and maintain high-quality products.
Nevertheless, there will still be some tasks that cannot be accomplished through automation and will require manual labour. Thus, the proposed manufacturing system will be hybrid in nature.
Positioning in global market:
There are plans that the construction of the new plant will help improve the company’s position in the global market for helmets. The expansion of capacity and increased efficiency of production will help increase the export potential of the company.
This decision shows the direction taken by other companies when investing in technology to expand business but retain flexibility in production.
