Rajkot-based snacks maker Balaji Wafers Private Limited is setting up a new production facility at Indore in Madhya Pradesh.
The company plans to invest about Rs 400 crore in a phased manner in the next two or three years.
"As part of our expansion, we acquired land in Indore some months back. Construction work is going on and it will be over within the next year and a half," said Keyur Virani, director, Balaji Wafers Private Limited.
The initial production capacity of the new plant will be 1,500 kg per hour for wafers and other snacks and gradually, output will be doubled based on the requirement.
The setting up of a production unit in Madhya Pradesh is part of the company's plan to tap markets in the North Indian market.
Virani said, "With this new plant, we will be able to cater to Madhya Pradesh, Rajasthan, Delhi and surrounding areas. The new plant will manufacture all the products of Balaji."
Balaji Wafers enjoys around 65 percent market share in western Indian snacks market and is present in Gujarat, Maharashtra, Goa, Rajasthan and some parts of Madhya Pradesh.
Its turnover exceeds Rs 1,200 crore in 2013-14 and the company expects Rs 1,600 crore turnover by the end of current financial year.
Talking about the investment for the project, Virani said, "It is a Rs 400 crore project and we will manage fund through our internal sources and from banks. Investment will be done in a phased manner. First, we will invest about Rs 200 crore to set up the plant and its machinery and in the second phase, another Rs 200 crore will be spent for various other requirements."
The company had invested about Rs 100 crore and installed two production lines at its plant in Rajkot in 2014. It also doubled its production capacity at Valsad plant in 2013.