Business Standard

India Inc pushes capex as capacity use nears 75%

- More on

With India Inc’s average capacity utilisatio­n touching 74 per cent, according to the Reserve Bank of India (RBI), top Indian conglomera­tes are finally pressing the pedal on capital expenditur­e.

According to a report by Motilal Oswal Financial Securities (MOSL), private sector capital expenditur­e (capex) has started ramping up from select sectors, which will get another leg up from thermal power, production linked-led capex and semiconduc­tor capex.

Last week, Tata Electronic­s and Powerchip Semiconduc­tor Manufactur­ing Corp (PSMC), Taiwan, announced plans to invest ~91,000 crore in Dholera, while Tata Semiconduc­tor Assembly and Test Private Limited announced plans to invest ~27,000 crore in Assam.

“The Tata Group has a tradition of pioneering many sectors in the country, and we are confident that our entry in semiconduc­tor fabricatio­n will add to this legacy,” Tata Sons Chairman N Chandrasek­aran said after announcing a slew of investment­s in the semiconduc­tor business. Other conglomera­tes are also leading the investment plans. Aditya Birla announced plans to invest ~10,000 crore in the paints business.

The Adani Group is leading the capex plans in the infrastruc­ture sector as it expects to report record Ebitda (earnings before interest, tax and depreciati­on) of ~80,000 crore for the financial year ended March 2024, with ~1 trillion for 2025. It will invest in data centres, airports, roads, ports and power generating units in the coming quarters with equity investment­s expected from sovereign funds from West Asia.

 ?? ??

Newspapers in English

Newspapers from India