SPEB Adhesives Invests Rs 33.73 Cr in Khalapur Mega Plant

SPEB Adhesives has allocated Rs 33.73 crore from its December 2025 SME listing towards a structured manufacturing expansion programme aimed at strengthening production capabilities and long-term scalability.

A major part of the investment is being directed towards a new 16,000+ square metre manufacturing facility in Khalapur. The new plant will support backward integration into water-based adhesives, a segment currently reliant on outsourced production. The initiative is expected to improve production control, enhance cost efficiency, and support future capacity expansion.

The company’s manufacturing capacity is projected to increase from 3,600 tonnes in FY25 to 8,550 tonnes in CY2026, representing a 137 percent rise. SPEB is also expanding into related product segments including epoxy, flooring, and wallpaper adhesives, while strengthening its distribution network across India through initiatives such as a planned warehouse in Rajasthan.

The expansion strategy reflects a broader trend among India’s SME manufacturers, where companies are increasingly focusing on integrated operations, large-scale capacity building, and higher-value product segments to improve competitiveness and long-term market positioning.

News by Rahul Yelligetti.