Domestic capital goods firm announces expansion plan, to venture into Dubai market with Rs 500 million investment

Capital goods company Gujarat Toolroom Limited has announced an expansion plan as a part of its diversification of the product portfolio. The company is foraying into the Dubai market and will focus on precious diamonds, stones, gold bars and jewellery.

Notably, the capital goods sector plays an important role in facilitating the overall economic growth and development of several associated industries.

The company said that the latest move will have a significant impact on its growth trajectory in the coming quarters.

"By entering Dubai's market, the company is poised to tap into an industry known for its global appeal and high demand. The establishment of a wholly-owned subsidiary company will have a significant impact in this sector," it said in a statement.

The company expects that the development will also drive its revenue and profit as well in the coming years.

"The allocation of Rs 500 million as investment capital demonstrates a long-term commitment to establishing a strong presence in Dubai's Precious market," it said, adding that the move is a part of strategic vision and readiness to explore new markets.

Meanwhile, shares of the industrial company on Monday hit a fresh 52-week high of Rs 19.70 on BSE. It has delivered a return of 106 per cent in the past six months, according to the BSE website. In the last one and two years, the stock has delivered a return of 738 per cent and 1359 per cent, respectively.

Gujarat Toolroom is actively involved in serving the medical disposables, pharmaceuticals, and food & beverage packaging industries. It recently reported an import transaction with a Hong Kong-based organisation.

The capital goods sector is vital for building and upgrading infrastructure, such as power plants, transportation systems and manufacturing facilities. India's infrastructure development relies heavily on the production and utilisation of capital goods.