Ritesh International plans major capacity expansion.

Ritesh International Ltd, a manufacturer of stearic acid, fatty acid and glycerin, has approved a 50 per cent expansion of production capacity at its existing facility in Ahmedgarh, Punjab.

The company plans to invest ₹7 crore in the expansion, which will increase production capacity from 80 metric tonnes per day to 120 metric tonnes per day.

The project will be funded through a combination of bank debt and internal accruals. Of the total investment, around ₹1 crore will be financed through long-term bank loans, while the remaining ₹6 crore will come from internal accruals.

The expansion is expected to be completed within approximately eight months, with commercial operations targeted to begin in the first quarter of FY2027-28.

The company said the investment is aimed at meeting rising customer demand, strengthening its market share and improving operating margins.

“This 50% capacity addition marks a pivotal milestone in our company's growth trajectory. With our existing facilities operating near peak capacity utilisation, this expansion directly responds to rising customer demand across our core markets,” Ritesh Arora, Chairman and Managing Director, said.

Arora added that the company would maintain a healthy balance sheet while positioning itself for sustained revenue growth and improved operational efficiency through a prudent mix of debt financing and internal accruals.